By: Dima Chernovolov
EUR/CAD recently broke the daily Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity (7 bars) and above-average clarity (6 bars). EUR/CAD is expected to fall toward the forecast price 1.4688.
As can be seen from the daily EUR/CAD chart below – the pair earlier broke the support area located between the support level 1.4775 (which has been reversing the pair from the middle of July) and the 61.8% Fibonacci correction of the upward impulse from July. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone increases the probability EUR/CAD will continue fall toward the forecast price 1.4688.