Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the hourly Rising Wedge chart pattern which was previously 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 (3 bars), low Uniformity (3 bars), and near-maximum Clarity (9 bars). AUD/CAD is expected to rise further inside this chart pattern – in line with the earlier breakout of the resistance level shown below.

As can be seen from the daily AUD/CAD chart below – the price earlier broke the key resistance level 0.8950 (which stopped the previous sharp impulse wave at the start of April). This price level is acting as the strong support level after it was broken. The proximity of this support level and the higher visibility of this chart pattern to the market participants (reflected by near maximum Clarity rating) increase the probability AUD/CAD will continue to rise inside this Rising Wedge.