Trade of the Day: EUR/CAD

By: Dima Chernovolov
EUR/CAD continues to fall toward the key support level 1.3491, which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 6-bar level – which is the result of the six previous price reversals from this price level. EUR/CAD is expected to continue to fall toward the support level 1.3491.

As can be seen from the daily EUR/CAD chart below – the price earlier reversed down from the pivotal resistance level 1.3760 (which has been reversing the price from March) – strengthened by the upper daily Bollinger Band and by the 61.8% Fibonacci correction of the downward impulse from March. The proximity of this resistance area and the clear daily downtrend increase the probability EUR/CAD will continue to fall toward the key support level 1.3491.