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), strong Uniformity (7 bars) and near-maximum Clarity (8 bars). AUD/CAD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily AUD/CAD below, the price earlier broke through the resistance area lying between the key resistance level 0.9480 (which has been reversing the price from February),  resistance trendline of the daily down channel from December and 61.8% Fibonacci correction of the downward impulse from January. This price zone is acting as support area after it was broken.  The proximity of this resistance support increases the probability AUD/CAD will continue to rise inside this Up Channel.