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 5-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and strong Clarity (9 bars). AUD/CAD is expected to continue to rise inside this Up Channel.

As can be seen from the daily AUD/CAD chart below – the pair earlier reversed up with the daily Hammer from the support zone lying between the key support level 0.9135 (previous monthly low from July) and the lower daily Bollinger Band. The proximity of this support area and the clear bullish divergence on the daily Stochastic increase the probability AUD/CAD will continue to rise inside this Up Channel.