Trade of the Day: USD/CAD

USD/CAD falling inside the 4-hour Down Channel chart pattern, which was identified by Autochartist. This chart pattern indicates possible bearish price movement toward the target level 1.3199. The following are the optimal entry and stop-loss levels calculated by Autochartist:  entry at 1.3333 with the protective stop-loss at 1.3390.

As can be seen from the daily USD/CAD chart below – the pair broke the support area located between the key support level 1.3380 (which has been reversing the price from the start of August) and the 61.8% Fibonacci correction of the upward impulse from July. These levels are acting as the resistance after they were broken. Given the proximity of these resistance levels , USD/CAD can be expected to fall further toward the target level 1.3199.