By: Dima Chernovolov
EUR/CAD continues to fall inside the hourly Falling Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar) and below-average Uniformity and Clarity (4 bars). EUR/CAD is expected to fall further inside this Falling Wedge.
As can be seen from the daily EUR/CAD chart below – the pair previously reversed down from the resistance area located between the pivotal resistance level 1.4600 (which has been reversing the pair from the middle of 2021), upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from September. The proximity of this resistance area increases the probability EUR/CAD will continue to fall inside this Falling Wedge.