Trade of the Day: USD/CAD
By: Dima Chernovolov
USD/CAD continues to fall inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 3-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and lower Clarity (4 bars). USD/CAD is expected to fall further inside this Down Channel.
As can be seen from the daily USD/CAD chart below – the price earlier reversed down from the key resistance level 1.2358 (former monthly low from March) – acting as the resistance after it was broken previously. The proximity of this resistance level and the strong weekly downtrend increase the probability USD/CAD will continue to fall inside this Down Channel.
