Market Condition:AUD/CAD Daily Breakout
Target 1: 1.0169 (2015 High)
Target 2: 1.0835 (870 Extension)
Invalidation: Reversal Below .990
AUD/CAD Daily Chart
(Created using Marketscope 2.0 Charts)
The AUD/CAD is attempting to breakout from a descending price channel that has been developing for the last two months. Breakouts can potentially be signaled on a move above the previous swing high, which is found at .9965. On a bullish breakout, traders can then begin to target the standing December 2015 high at 1.0169. Conversely, traders treating this breakout as a flag pattern may extrapolate 870 pips from the point of breakout to find targets near 1.0835.
In the event that a bullish breakout fails, traders will watch for prices to trade back inside of the previously mentioned price channel. This includes a move back below psychological resistance at .9900.
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