Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to fall inside the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the medium Initial Trend (5 bars), significant Uniformity (7 bars) and average Clarity (5 bars). USD/CAD is expected to fall further inside this Down Channel.

As can be seen from the daily USD/CAD chart below – the pair earlier reversed down with the daily Japanese candlesticks pattern Evening Star from the strong resistance area located between the long-term resistance level 1.3800 (previous monthly high from November), and the upper daily Bollinger Band. The proximity of this resistance area increases the probability USD/CAD will continue to fall inside this Down Channel.