By: Dima Chernovolov
EUR/CAD continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (1 bar), strong Uniformity (9 bars) and significant Clarity (7 bars). EUR/CAD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the key resistance zone shown below.
As can be seen from the daily EUR/CAD chart below – the price earlier reversed down from the resistance area lying between the resistance level 1.5420 (upper boundary of the intact sideways price range from April), upper daily Bollinger Band and the 38.2% Fibonacci retracement of the earlier downward impulse from March. The proximity of this resistance area increases the probability EUR/CAD will continue to fall inside this Down Channel.