Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to fall inside the 4-hour Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (9 bars) and significant Clarity (8 bars). USD/CAD is expected to fall further inside this Falling Wedge.

As can be seen from the daily USD/CAD chart below – the pair earlier reversed down from the key resistance area located between the key resistance level 1.3200 (which reversed the pair sharply in July), upper daily Bollinger Band and the resistance trendline of the wide up channel from last year. The proximity of this resistance area adds to the probability USD/CAD will continue to fall inside this Falling Wedge.