Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise after the recent breakout of the daily Down Channel chart pattern which was identified earlier by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), significant Uniformity (7 bars) and maximum Clarity (10 bars). AUD/CAD is expected to rise toward the forecast price 0.9388 – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the weekly AUD/CAD chart below, the price earlier reversed up from the support area lying between the long-term support level 0.9100 (which also stopped the sharp downtrend in 208) and the lower weekly Bollinger Band. The proximity of this support area adds to the probability AUD/CAD continue to rise toward the forecast price 0.9388.