By: Dima Chernovolov
EUR/CAD continues to rise inside the daily Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the medium Initial Trend (5 bars), above-average Uniformity (7 bars) and substantial Clarity (8 bars). EUR/CAD is expected to rise further inside this Triangle – 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 pair earlier reversed up sharply from the support area lying between the key support level 1.4965 (which also formed the bottom of this Triangle) and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/CAD will continue to rise inside this Triangle.