Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to rise inside the 15-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the medium Initial Trend (5 bars), lower Uniformity (2 bars) and strong Clarity (8 bars). EUR/CAD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily EUR/CAD chart below – the bottom of this Up Channel formed when the pair reversed up from the support area lying between the key support level 1.4465 (which has been reversing the price from September) and the lower daily Bollinger Band. The proximity of this support area and the bullish Stochastic divergence add to the probability EUR/CAD will continue to rise inside this Up Channel.