Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to rise inside the daily Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the medium Initial Trend (5 bars) , smaller Uniformity (2 bars) and strong Clarity (8 bars). EUR/CAD is expected to rise further inside this Up Channel.

As can be seen from the daily EUR/CAD chart below – the pair recently broke the resistance area lying between the key resistance level 1.3700 (former monthly high from October) and the resistance level 1.3800 (multi-month high from May). This price area is acting as the strong support zone after it was broke. The proximity of support area increases the probability EUR/CAD will continue rise inside this Up Channel.