Trade of the Day: EUR/CAD

Posted on February 8, 2021 by Sam Trinston wrote in Market Analysis.

By: Dima Chernovolov

EUR/CAD continues to rise inside the hourly Ascending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Ascending Triangle at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). EUR/CAD is expected to rise further inside this Ascending Triangle – in line with the earlier upward reversal form the support area shown below.

As can be support from EUR/CAD chart below, the price earlier reversed up from the support area lying between the long-term support level 1.5320 (which has been reversing the price from 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 Ascending Triangle.