Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to rise inside the 30-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the sharp Initial Trend (9 bars), strong Uniformity (8 bars) and above-average Clarity (6 bars). USD/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal form the support area shown below.

As can be seen from the daily USD/CAD chart below – the pair earlier reversed up from the support area lying between the key support level 1.3875 (which has been reversing the price from April), lower daily Bollinger Band and the 50% Fibonacci correction of the previous sharp upward impulse from January. The proximity of this support zone adds to the probability USD/CAD will continue to rise inside this Down Channel.