Trade of the Day: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to fall inside the 4-hour Falling Wedge chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (3 bars), average Uniformity (5 bars) and strong Clarity (8 bars). AUD/CAD is expected to fall further inside Falling Wedge – in line with the earlier downward reversal from the key resistance level highlighted below.
As can be seen from the daily AUD/CAD chart below, the price earlier reversed down from the key resistance level 0.9200 (former powerful support level which stopped the sharp downtrend in the middle of May). The proximity of this resistance level and the strength of the active daily downtrend increase the probability AUD/CAD will continue to rise fall inside Falling Wedge.
