Daily Forex Update: EUR/CAD

By: Dima Chernovolov

EUR/CAD recently broke the Rising Wedge chart pattern was previously identified by Autochartist on the 4-hour charts. Autochartist rates the Quality of this Rising Wedge at the 8 bar level – which is the result of the below-average Initial Trend (4 bars) and strong Uniformity and Clarity (rated at the 8 and 9 bar levels respectively).  EUR/CAD is expected to fall to the forecast price 1.4885.

As can be seen from the weekly EUR/CAD chart below, the top of this Rising Wedge formed near the resistance zone lying between the powerful resistance level 1.5260 (which also reversed the sharp upward correction in November of 2016), 61.8% Fibonacci retracement of the downward impulse from the start of 2016 and the upper weekly Bollinger Band.  The proximity of this resistance zone and the overbought reading on weekly Stochastic indicator both increase the probability EUR/CAD will continue to fall toward the forecast price 1.4885.

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