Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to fall inside the 30-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 3-bar level – which is the result of the slow Initial Trend (1 bars), below-average Uniformity (4 bars) and medium Clarity (5 bars). EUR/CAD is expected to fall further inside this Falling Wedge.

As can be seen from the daily EUR/CAD chart below – the pair earlier reversed down from the resistance area located between the resistance level 1.3550 (which has been reversing the price from the end of September) and the 38.2% Fibonacci correction of the weekly downward impulse from the start of 2022. The proximity of this resistance area and the clear weekly downtrend add to the probability EUR/CAD will continue to fall inside this Falling Wedge.