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 rates the quality of this Triangle at the 5-bar level – which is the result of the slow Initial Trend (3 bars), average Uniformity (5 bars) and substantial Clarity (8 bars). AUD/CAD is expected to rise further inside this Triangle – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily AUD/CAD chart below, the pair earlier reversed up from the key support area lying between the long-term support level 0.8900 (which has been reversing the price from the start of august, and which created the previous Morning Star) and the lower daily Bollinger Band. The proximity of this support area increases the probability AUD/CAD will continue to rise inside this Triangle.