Trade of the Day: AUD/CAD

AUD/CAD continues to rise inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the strong Initial Trend (7 bars), low Uniformity (3 bars) and medium Clarity (5 bars). AUD/CAD is expected to rise further inside this Down Channel.

As can be seen from the weekly AUD/CAD chart below – the pair earlier reversed up from the strong support level 0.8625 (which stopped the sharp weekly downtrend in 2022) standing close to the lower weekly Bollinger Band. The proximity of this support area and the still oversold weekly Stochastic increase the probability AUD/CAD will continue to rise inside this Down Channel.