The daily chart of the Australian currency has formed a descending channel and is at the level of 0.7310. Aussie is likely to pull back down away from the crossing point of this channel. Of course, a breakout of the downtrend can happen, and we should be aware of it:

Pulling back from the broken weekly descending channel and forming a hammer, the rate of USD/CAD is getting back to this channel:

50% Fibonacci level

There is the level of 1.2887 in the daily chart. This level serves as a base for the weekly hammer and can support dropping rates. In the chart, an area of potential pullback of the pair is denoted by the orange triangle:

Please note that this material is provided for informational purposes only and should not be considered as investment advice. Trading in the financial markets is very risky.

 

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