Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to rise inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). EUR/CAD is expected to rise further inside this Up Channel.

As can be seen from the weekly EUR/CAD chart below – the pair previously broke the resistance area located between the resistance level 1.4200 (former strong support from the end of 2021 and the start of 2022) and the 61.8% Fibonacci correction of the downward impulse from the end of October. This price area is acting as the strong support zone after it was broken. The proximity of this support zone adds to the probability EUR/CAD will continue to rise inside this Up Channel.