Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the 4-hour Triangle chart pattern which was identified previously by Autochartist. Autochartist measures the quality of this Triangle at the 7-bar level – which is the result of the slow Initial Trend (4 bars) and strong Uniformity and Clarity (8 bars). AUD/CAD is expected to rise further inside this Triangle – in line with the earlier upward reversal from the key support area highlighted below.

As can be seen from the daily AUD/CAD chart below, the price earlier reversed up with the daily Japanese candlesticks reversal pattern Bullish Engulfing from the support area lying between the key support level 0.8920, lower daily Bollinger Band and the support trendline of the multi-month down channel from April. The proximity of this support area increases the probability AUD/CAD will continue to rise inside this Triangle.