Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the daily Down Channel chart pattern which was previously previously by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which reflects the sharp Initial Trend (9 bars), below-average Uniformity (4 bars) and higher Clarity (6 bars). AUD/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support zone highlighted below.

As can be seen from the daily AUD/CAD chart below, the price earlier reversed up from the support area lying between the key support level 0.8916 (which has been repeatedly reversing the price from the start of August) and the lower daily Bollinger Band.  The proximity of this support area adds to the probability AUD/CAD will continue to rise inside this Down Channel.