Trade of the Day: EUR/CAD
By: Dima Chernovolov
EUR/CAD continues to fall inside the 15-minute Triangle chart pattern, which was recently 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 and Uniformity (2 bars) and strong Clarity (8 bars). EUR/CAD is expected to fall further inside this Triangle.
As can be seen from the daily EUR/CAD chart below – the price recently broke below the strong support level 1.4135 (previous low of wave (1) from January) and the support trendline of the wide daily down channel from October. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone and the strong daily downtrend increase the probability EUR/CAD will continue to fall inside this Triangle.