Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD recently broke the 30-minute Double Bottom chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Double Bottom at the 6-bar level – which is the result of the strong Initial Trend (7 bars), lower Clarity (1 bar) and above-average Uniformity (6 bars). USD/CAD is expected to rise further toward the forecast price 1.2135.

As can be seen from the daily USD/CAD chart below – the pair earlier reversed up from the pivotal support level 1.2035 (which has been reversing the pair from the start of May) intersecting with the lower daily Bollinger Band and the weekly down channel from 2020. The proximity of these support levels increases the probability USD/CAD will continue to rise toward forecast price 1.2135.