By: Dima Chernovolov
USD/CAD continues to rise inside the daily Down Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (10 bars) and significant Clarity (8 bars). USD/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily USD/CAD chart below, the price earlier reversed up from the support area lying between the key multi-month support level 1.3050 and the lower daily Bollinger Band. The proximity of this support area adds to the probability USD/CAD will continue to rise inside this Down Channel in the nearest time.