Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD recently broke the 4-hour Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (6 bars) and strong Clarity (8 bars). AUD/CAD is expected to rise toward the forecast price 0.9081.

As can be seen from the daily AUD/CAD chart below – the pair earlier reversed up with the daily Bullish Engulfing from the support area located between the key support level 0.8975 (which reversed the earlier strong downward impulse in December) and the lower daily Bollinger Band. The proximity of this support zone adds to the probability AUD/CAD will continue to rise toward the forecast price 0.9081.