Inverted Head and Sholders on AUDCAD

During yesterday’s session we could observe clear increases in the AUDCAD currency pair. Buyers led to the breakout of the neckline of the inverted head and shoulders pattern, so there is a chance that the upward move will continue. Currently, the zone at 0.9650 remains the key support. According to the classical technical analysis, as long as the pair sits above it, there is a chance that the pair will move to the upper limit of the range that results from the height of the formation (orange rectangles).

In addition, the resistance zone at 0.9800 is marked with earlier price reactions and 61.8% Fibonacci retracement of the recent downturn wave. The upside scenario will be negated when the pair will fall below 0.9650 level.