Daily Forex Update: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to fall inside the Up Channel chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this Up Channel at the 7-bar level – which is the result of the sharp Intimal Trend (rated at the maximum, 10-bar level), low Uniformity (3 bars) and significant Clarity (7 bars). EUR/CAD is expected to fall toward the lower support trendline of this Up Channel.

As can be seen from the daily EUR/CAD chart below, the top of this Up Channel formed when the pair reversed down from the resistance zone lying between the resistance levels 1.4900 and 1.5000, upper daily Bollinger Band and the 38.2% Fibonacci correction of the previous sharp downward impulse from January (high Initial Trend reflects the strength of this impulse). The proximity of this resistance area adds to the likelihood EUR/CAD will continue to fall inside this Up Channel.

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