Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to fall inside the 4-hour Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and strong Clarity (8 bars). EUR/CAD is expected to fall further inside this Falling Wedge – in line with the earlier breakout of the support area show below.

As can be seen from the weekly EUR/CAD chart below – the price earlier broke the support area located between the key support level 1.5050 and the 50% Fibonacci correction of the weekly upward impulse from the start of 2020. This price area is acting as the strong resistance zone after it was broke. The proximity of this resistance zone increases the probability EUR/CAD will continue to fall inside this 4-hour Falling Wedge.