Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the uniform Rising Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which reflects the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and medium Clarity (5 bars).  AUD/CAD is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the resistance level shown below.

As can be seen from the daily AUD/CAD chart below – the price earlier broke above the key resistance level 0,9445 (which stopped the previous upward price impulses at the start of June and July). This price level is acting as the support after it was broken.  The proximity of this support level and the strength of the daily uptrend increase the probability AUD/CAD will continue the upward movement inside this Rising Wedge.