Trade of the Day: USD/CAD
By: Dima Chernovolov
USD/CAD continues to rise inside the daily Up Channel which was recently identified by Autochartist. Autochartist rates the quality of daily this Up Channel at the 7-bar level – which is the result of the average Initial Trend (5 bars), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). USD/CAD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the strong support area shown below.
As can be seen from the daily USD/CAD below, the price earlier reversed up with the daily long-legged Doji from the support area lying between the key support level 1.3280 (which has been reversing the price from March), lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse from February. The proximity of this support area increases the probability USD/CAD will continue to rise inside this Up Channel.