• AUD/CAD falling inside minor correction 2
• Further losses are likely
AUD/CAD recently reversed down from the resistance zone lying between the resistance level 0.9850 (top of the previous correction 4), upper daily Bollinger Band and the 38.2% Fibonacci retracement of the previous downward impulse C rom March.
The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Evening Star – which started the active minor correction 2.
AUD/CAD is likely to continue to fall toward the next support level 0.9700 (former resistance from the start of May) – the breakout of which can lead to further losses toward the key support at 0.9580.