Trade of the Day: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to fall inside the daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Up Channel at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and near-maximum Clarity (8 bars). AUD/CAD is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the weekly AUD/CAD below, the top of this Up Channel formed when the price reversed down from the resistance area lying between the key resistance level 0.9600 (former multi-month support from 2017 and 2018) and the upper weekly Bollinger Band. The proximity of this resistance area adds to the probability AUD/CAD will continue to fall inside this Channel.