Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to rise inside the 30-minute Down Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and maximum Clarity (10 bars). EUR/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.

As can be seen from the weekly EUR/CAD chart below, the pair earlier reversed up from the powerful support area lying between the long-term support level 1.4480 (which has been reversing the price from the middle of 2017) and the lower weekly Bollinger Band. The proximity of this support area increases the probability EUR/CAD will continue to rise inside this Down Channel.