Trade of the Day: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to fall inside the 15-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the above-average Initial Trend (6 bars), lower Uniformity (4 bars) and strong Clarity (8 bars). AUD/CAD is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily AUD/CAD chart below, the top of this chart pattern formed when the pair reversed down from the resistance area lying between the major resistance level 0.9130 (which has been reversing the price from September) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability AUD/CAD will continue to fall inside this Falling Wedge.