Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to rise inside hourly Down Channel chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the low Initial Trend (1 bar), above-average Uniformity (6 bars) and medium Clarity (5 bars). USD/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the powerful support area shown below.

As can be seen from the daily USD/CAD chart below, the pair recently reversed up from the major support area lying between the long-term support level 1.3000 (which has been reversing the pair from the middle of 2019) and the lower daily Bollinger Band. The proximity of this support area increases the probability USD/CAD will continue to rise inside this Down Channel.