This structure on AUDCAD indicates a sideways market. The market is gradually squeezed between the green and yellow walls of the channels. At the moment, there are two possibilities for future price movement. We can see both a bullish trend and a bearish one, depending on who wins in the confrontation between bulls and bears.
If the bulls win, the upper bound of the green channel and the resistance level of 0.908 will be broken. In this case, the price will open the way to the upper yellow wall and resistance of 0.934.
However, if the bears gain strength and can push the price below the support level of 0.897, which is on the lower yellow wall, they will open the way to the lower green bound and the support level of 0.878. Chart provides a schematic view of two options of the market movement.
