AUDCAD since April is moving in consolidation, which lower limit coincides with 50% of the Fibonacci correction from previous increases.
Looking at daily chart, we notice that market has tested this support for the third time and strong demand response has emerged in its vicinity. Those increases appear to be significantly less dynamic than the previous ones as well as the recent downward movement.
Numerous upper wicks and two pin-bar candles foreshadow declines again.
It is also worth noting that growth reached only around 50% of the Fibonacci correction from the last downward impulse. According to the theory of boxes, if market will reach lower limit of consolidation again as a result of rejection of this level, we would expect AUDCAD to overcome this support and break it down.
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Looking on H1 chart we will see that before declines can continue, we would have to break bottom of the bullish channel lasting from Wednesday. However, taking into account that there was bullish response in area of its lower limit, in short term we would expect a rebound.
