Trade of the Day: EUR/CAD
By: Dima Chernovolov
EUR/CAD continues to rise inside the 15-inute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bar), and strong Clarity (7 bars). EUR/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area highlighted below.
As can be seen from the daily EUR/CAD chart below – the pair earlier reversed up from the support area lying between the key support level 1,5200 (which also stopped the sharp downward correction in March), lower daily Bollinger Band and the 50% Fibonacci correction of the pervious upward impulse from February. The proximity of this support zone and the oversold daily Stochastic increase the probability EUR/CAD will continue to rise inside this Down Channel.