Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to fall inside the 30-minute Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 3-bar level – which is the result of the slow Initial Trend (2 bars), medium Uniformity (5 bars) and lower Clarity (3 bars). USD/CAD is expected to fall further inside this Triangle.

As can be seen from the daily USD/CAD chart below – the pair earlier reversed down from the key resistance level 1.3820 (which has been reversing the pair from the end of September). Given the clear bearish divergence of the daily Stochastic indicator and the proximity of the resistance level 1.3820, USD/CHF is likely to continue to fall further inside this Triangle.