Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to fall toward the key support level 1.3742, which was recently identified by Autochartist. Autochartist rates the significance of this support level at the 4-bar level – which is the result of the four earlier reversals from this price level. USD/CAD is expected to continue to fall toward the support level 1.3742.

As can be seen from the daily USD/CAD chart below – the pair earlier reversed down from the resistance support area located between the key resistance level 1.3800 (former monthly high from November) and the upper daily Bollinger Bands. The proximity of this resistance area and the overbought daily Stochastic increase the probability USD/CAD will continue to fall toward the support level 1.3742.