Trade of the Day: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to rise inside the 15-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the slow Initial Trend (2 bars), near-maximum Uniformity (8 bars) and substantial Clarity (8 bars). AUD/CAD is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level shown below.
As can be seen from the daily AUD/CAD chart below – the pair earlier broke above the key resistance level 0.915 (which has been reversing the price from the end of December). This level is acting as strong support now. The proximity of this support level and the strength of the active daily upward impulse add to the probability the pair will continue to rise inside this Up Channel.