Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD recently broke the key resistnace level 1.2524, which was previously identified by Autochartist. Autochartist rates the Significance of this resistnace level at the 5-bar level – which is the result of the five previous price reversals from this price level. USD/CAD is expected to continue to rise toward the forecast price 1.2558.

As can be seen from the daily USD/CAD chart below – the price earlier reversed up from the support area located between the pivotal support level 1.2455 (which has been reversing the pair from January) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic add to the probability USD/CAD will continue to rise toward the forecast price 1.2558.