By: Dima Chernovolov
EUR/CAD continues to rise inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the sharp Initial Trend (10 bars), low Uniformity (1 bar) and strong Clarity (9 bars). EUR/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily EUR/CAD chart below, the price earlier reversed up from the support area lying between the support level 1.5440 (former monthly low from September), lower daily Bollinger Band and the 61.8% Fibonacci correction of the sharp daily upward impulse from June. The proximity of this support area adds to the probability EUR/CAD will continue to rise inside this Down Channel.