Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to rise inside the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 6-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars) and maximum Clarity (10 bars). EUR/CAD is expected to rise further inside this chart pattern – in line with the earlier upward reversal from the support zone shown below.

As can be seen from the daily EUR/CAD chart below, the price earlier reversed up from the support zone located between the pivotal support level 1,5555 (which has been reversing the price from the middle of September), lower daily Bollinger Band and the 61,8% Fibonacci correction of the upward impulse from  the start of last month. The proximity of this support area adds to the probability EUR/CAD will continue to rise inside this Rising Wedge.