Trade of the Day: EUR/CAD

By: Dima Chernovolov

EUR/CAD continues to fall inside the 30-minute Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), low Uniformity (3 bars) and strong Clarity (8 bars). EUR/CAD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily EUR/CAD chart below – the pair recently reversed down from the from the resistance area lying between the key resistance level 1.5465 (which has been reversing the price from the start of April), upper daily Bollinger Band and the 50% Fibonacci correction of the downward price impulse from march. The proximity of this resistance area adds to the probability EUR/CAD will continue to fall inside this Down Channel.