Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to fall inside the hourly 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 below-average Initial Trend (4 bars), stronger Uniformity (6 bars) and substantial Clarity (9 bars). AUD/CAD is expected to continue to fall inside this Up Channel.

As can be seen from the daily AUD/CAD chart below – the pair earlier reversed down from the resistance zone lying between the pivotal resistance level 0.9220 (which has been reversing the price from the start of August) and the 38.2% Fibonacci correction of the downward impulse from July.  The proximity of this resistance area and the clear daily downtrend increase the probability AUD/CAD will continue to fall inside this Up Channel.