Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to rise inside the daily Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and strong Clarity (9 bars). USD/CAD is expected to rise further inside this Up Channel.

As can be seen from the daily USD/CAD chart below – the pair earlier broke the resistance area located between the key resistance level 1.3215 (former monthly high from July) and the resistance trendline of the weekly up channel from 2021. This price area is acting as the strong support zone after it was broken. The proximity of this support zone and the strong daily uptrend increase the probability USD/CAD will continue to rise inside this Up Channel.