Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to fall inside the uniform 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which reflects the stronger than average Initial Trend (6 bars), higher Uniformity (7 bars) and low Clarity (4 bars). USD/CAD is expected to fall further inside this Up Channel .

As can be seen from the weekly USD/CAD chart below – the price earlier reversed down from the resistance area located between the major round resistance 1.3 (former multi-month support from 2019 and 2020) and the upper weekly Bollinger Band. Given the strength of the nearby resistance 1.3, USD/CAD can be expected to fall further inside this Up Channel .