Trade of the Day: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to fall inside the hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar) , medium Uniformity (5 bars) and strong Clarity (8 bars). AUD/CAD expected to fall further inside this Up Channel – in line with the earlier downward reversal form the key resistance area shown below.
As can be seen from the daily AUD/CAD chart below – price earlier reversed down from the resistance area lying between the pivotal resistance level 0.9635 (which has been reversing the price from July) and the upper daily Bollinger Band. The proximity to this resistance area adds to the probability AUD/CAD will continue to fall inside this Down Channel.