Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to fall inside the hourly Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which reflects the strong Initial Trend (10 bars), low Uniformity (1 bar) and below-average Clarity (4 bars). EUR/CAD is expected to fall further inside this Up Channel.

As can be seen from the daily EUR/CAD chart below – the pair today reversed down with the daily Shooting Star from the resistance zone located set between the key resistance level 1.3215 (which has been reversing the pair from the middle of July) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/CAD will continue to fall inside this Up Channel.