Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD recently broke the key resistance level 1.3636, which was recently identified by Autochartist on the 15-minute charts. Autochartist rates the significance of this resistance level at the 4-bar level – which is the result of the 4 previous reversals from this price level. USD/CAD is expected to rise toward the forecast price 1.3668.

As can be seen from the daily USD/CAD chart below – the pair earlier reversed up sharply from the support zone located between the pivotal support level 1.3525 (which has been reversing the pair from the start of October), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from September. The clear daily uptrend and the proximity of support zone increases the probability USD/CAD will continue to rise toward the forecast price 1.3668.