Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the 4-hour Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and higher 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 chart below, the price earlier broke through the resistance area located between the resistance level 0.9670 (last year’s high) and the resistance level 0.9770 (December high from 2018). This price area is acting as the strong support after it was broken.  The proximity of this support area increases the probability AUD/CAD will continue to rise inside this Up Channel.