By: Dima Chernovolov
USD/CAD continues to rise inside the 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel chart at the 6-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and strong Clarity (9 bars). USD/CAD is expected rise fall further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily USD/CAD below, the price earlier broke through the resistance area lying between the resistance level 1.3320 (which reversed the price multiples times in January) and the 38.2% Fibonacci correction of the previous downward impulse from January. This price area is acting as strong support zone after it was broken. The proximity of this support area increases the probability USD/CAD will continue to rise inside this Up Channel.