Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD recently broke the daily Rising Wedge chart pattern which was identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 6-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars) and significant Clarity (7 bars). EUR/CAD is expected to fall toward the forecast price 1.4548.

As can be seen from the daily EUR/CAD chart below, top of this chart pattern formed when the price reversed down from the resistance area located between the resistance level 1.4700, upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous downward impulse from August. The proximity of this resistance area increases the probability EUR/CAD will continue to fall toward the forecast price 1.4548.