Trade of the Day: EUR/CAD

EUR/CAD just broke the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), low Uniformity (2 bars) and significant Clarity (7 bars). EUR/CAD is expected to fall toward the forecast price 1.4402.

As can be seen from the daily EUR/CAD chart below – the pair earlier reversed down from pivotal resistance level 1.4520 (which has been reversing the pair from the start of December), coinciding with the upper daily Bollinger Band. The proximity of this resistance level and the still overbought reading on the daily Stochastic add to the probability EUR/CAD will continue to fall toward the forecast price 1.4402.