By: Dima Chernovolov
EUR/CAD continues to fall inside the 15-minute Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), average Uniformity (5 bars) and strong Clarity (8 bars). EUR/CAD is expected to fall further inside this Down Channel.
As can be seen from the daily EUR/CAD chart below – the price earlier broke through the key support level 1.3400 (which has been repeatedly reversing the price from the end of April). The breakout of this support level accelerated the active downard impulse wave, which is also aligned with the predominant downtrend. The strength of the active downtrend add to the likelihood EUR/CAD will continue to fall inside this Down Channel.