Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD recently broke the “neckline” of the hourly Head and Shoulders chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Head and Shoulders at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (6 bars)  and significant Clarity (8 bars). AUD/CAD is expected to fall toward the forecast price 0.9252.

As can be seen from the daily AUD/CAD chart below – the price earlier reversed down from the resistance area located between the key resistance level 0.9360 (which has been reversing the price from June), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from April. The proximity of this resistance area and the clear daily downtrend increase the probability AUD/CAD will continue to fall toward the forecast price 0.9252.