Trade of the Day: EUR/CAD
By: Dima Chernovolov
EUR/CAD continues to fall inside the daily Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the sharp Initial Trend (9 bars), below-average Uniformity (4 bars) and significant Clarity (8 bars). EUR/CAD is expected to fall further inside this Up Channel.
As can be seen from the daily EUR/CAD chart below – the price earlier reversed down from the resistance zone lying between the pivotal resistance level 1.4445 (which has been reversing the price from the end of October) and the upper daily Bollinger Band. The proximity of this resistance zone and the clear daily downtrend increase the probability EUR/CAD will continue to fall inside this Up Channel.