AUD/CAD Technical Setup: Sideways Base, Breakout to 0.9120Australian Dollar/Canadian DollarOANDA:AUDCADCakirInsightsThe AUD/CAD currency pair experienced a sharp decline on 25 September, with price action dropping aggressively from the 0.9170 zone down to the 0.9110 region. Rather than being an artificial move, the structure of the decline aligns closely with established technical factors such as resistance rejection, momentum exhaustion, and a clear continuation of the prior bearish trend. Following the sell-off, the market has spent the last 6–7 hours consolidating in a narrow sideways channel just above 0.9100. This type of consolidation is commonly observed after strong directional moves, often functioning as a base for the next leg. In this case, the pattern is forming close to a support zone, suggesting potential accumulation. From a technical standpoint, the short-term bias is shifting toward a bullish breakout. The pair has defended the 0.9110 support, and the price action is compressing within a small descending channel. A clean break above this pattern would confirm renewed upside momentum. The immediate upside objective sits at 0.9120, which is the nearest resistance level. If buying momentum strengthens beyond this zone, the next resistance to monitor is 0.9170, the previous supply area that triggered the recent decline. On the downside, a failure to hold above 0.9100 could expose lower supports around 0.9085 and 0.9065. Key takeaway: The 25 September drop in AUD/CAD was primarily a technical correction within the broader market structure. As long as 0.9110 holds, the short-term outlook favors a rebound towards 0.9120, with potential for extended gains if momentum accelerates. Traders should monitor breakout confirmation before positioning for the next directional leg.