Today I want to share a trade pattern idea that I've posted few weeks ago in the Technical Analysis Contest, you can check out that prediction here as well: AUD/CAD Summer Trading Conditions

Since beginning of the year AUD/CAD has been trading in a very consistent and clear way to the upside, without much correction along the way. I suspect this trend will enter in a prolonged pause as we're facingsummer trading condition where volatility dry out and the market is characterized by lots of congestion. InFigure 1 we can see how we already are approaching major resistance and how price is contained between to major levels 1.0000 big round number and also big support level and 1.0350 resistance level. Basically we're in a 350 pips range zone and only a break and a close below/above this levels we can expect a continuation until than it's safe to trade the range.


Figure 1. AUD/CAD Weekly Chart.
In Figure 2 we can have a look on the daily price action and based on Elliott Wave count, price structure suggest we're still in some kind of correction as we can only count wave's of 3's there are no 5 waves in sights that can suggest a clear trend so it's wise to expect further consolidation especially in the short to medium term.

Figure 2. AUD/CAD Daily chart with Elliott Wave count.
Based on this and based on Elliott Wave projections we should expect an exchange rate for AUD/CAD of 1.0140 for 1st of August.

Best Regards,
Daytrader21
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