Trade of the Day: EUR/CAD

EUR/CAD continues to rise inside the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), low Uniformity (2 bars) and strong Clarity (8 bars). EUR/CAD is expected to rise further inside this Rising Wedge.

As can be seen from the daily EUR/CAD chart below – the pair earlier broke the resistance area set between the resistance level 1.4500 (former resistance from June) and the 61.8% Fibonacci correction of the downward impulse from May. This price area is acting as the strong support area after it was broken. The proximity of this support area increases the probability EUR/CAD will continue to rise inside this Rising Wedge.