Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD recently broke the hourly key support level 1.4951, which was previously identified by Autochartist. Autochartist rates the significance of this key support level at the 4-bar level – which is the result of the four previous reversals from this price level. EUR/CAD is expected to fall toward the forecast price 1.4888.

As can be seen from the daily EUR/CAD chart below – before breaking the support level 1.4951 the price reversed down from the resistance area lying between the resistance level 1.4975, upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from January. The proximity of this resistance zone increases the probability EUR/CAD will continue to fall toward the forecast price 1.4888.