Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD today broke the daily Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (3 bars), strong Uniformity (9 bars) and significant Clarity (8 bars). USD/CAD is expected to rise toward the forecast price 1.3580.

As can be seen from the daily USD/CAD chart below – the pair earlier broke the resistance zone located between the key resistance level 1.3500 (which stopped the pair earlier this month) and the 38.2% Fibonacci correction of the downward impulse from October. The broken price area is acting as the strong support zone now. The proximity of this support zone and the clear daily uptrend increase the probability USD/CAD will continue to rise toward the forecast price 1.3580.