Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD rising inside the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 6-bar level – which is the result of the slow Initial Trend (1 bar) and near-maximum Uniformity and Clarity (9 bars). AUD/CAD is expected to rise further inside this Rising Wedge.

As can be seen from the daily AUD/CAD chart below – the pair earlier broke above the resistance area lying at the intersection of the key resistance level 0.8830 (which reversed the price at the end of October) and the 50% Fibonacci retracement of the downward impulse from August. This price area is acting as the support area after it was broken. The proximity of support area adds to the probability AUD/CAD will continue rise inside this Rising Wedge.