Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to rise inside the 30-minute Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). EUR/CAD is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily EUR/CAD chart below, the price earlier reversed up from the combined support area lying between the pivotal support level 1.5300  (which has been reversing the price form November) and the lower daily Bollinger Band. The proximity of this support area adds to the probability EUR/CAD will continue to rise inside this Rising Wedge.