Trade of the Day: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to fall inside the 30-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the above-average Initial Trend (6 bars), higher Uniformity (7 bars), and strong Clarity (8 bars). AUD/CAD is expected to fall further inside this Down Channel – 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 pair recently reversed down from the resistance area located between the key resistance level 0.8700 (which reversed the price in February and March) and the 61.8% Fibonacci retracement of the previous sharp downward impulse from the start of March. The proximity of this resistance zone increases the probability AUD/CAD will continue to fall inside this Down Channel.