Daily Forex Update: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to fall inside the 30-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), high Uniformity (9 bars) and above-average Clarity (6 bars). EUR/CAD is expected to fall further inside this Falling Wedge – in line with the earlier breakout of the combined support area shown below.

As can be seen from the daily EUR/CAD chart below, price earlier broke the combined support area lying between the strong support level 1.5500 (which reversed the price in February and April) and the 50% Fibonacci correction of the previous sharp upward impulse from January. This price zone is acting as a strong resistance area after it was broken. The proximity of resistance area increases the probability EUR/CAD will continue to fall inside this chart pattern.

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