Trade of the Day: EUR/CAD
By: Dima Chernovolov
EUR/CAD continues to rise inside the daily Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (8 bars) and below-average Clarity (4 bars). EUR/CAD is expected to rise further inside this Triangle – in line with the earlier upward reversal from the key support area described below.
As can be seen from the daily EUR/CAD below, the pair earlier reversed up from the support area lying between the multi-month support level 1.4900 (which has been reversing the price from November) and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/CAD will continue to rise inside this Triangle.
