By: Dima Chernovolov
EUR/CAD continues to fall inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the strong Initial Trend (10 bars), significant Uniformity (8 bars) and near-maximum Clarity (9 bars). EUR/CAD is expected to fall further inside this Down Channel.
As can be seen from the daily EUR/CAD chart below – the price recently reversed down from the resistance zone located between the resistance level 1.3765 (former support from March which has been reversing the price from the start of April), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from March. The proximity of this resistance zone and the clear daily downtrend increase the probability EUR/CAD will continue to fall inside this Down Channel