Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the 30-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and strong Clarity (rated at the 8 bar level). AUD/CAD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.

As can be seen from the AUD/CAD chart below, the price earlier reversed up from the key support area located between the long-term support level 0.9320 (which has been reversing the pair from June), lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from May. The proximity of this support area increases the probability AUD/CAD will continue to rise inside this Up Channel.