Trade of the Day: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to fall inside the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which is the result of the significant Initial Trend (7 bars), strong Uniformity 8 bars) and average Clarity (5 bars). AUD/CAD is expected to fall further inside this Triangle – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily AUD/CAD below, the price earlier reversed down from the resistance area lying between the pivotal resistance level 0.9480 (which has been reversing the price from the middle of February), upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous downward impulse from the end of January. The proximity of this resistance area increases the probability AUD/CAD will continue fall inside this Triangle.