Daily Forex Update: EUR/CAD
By: Dima Chernovolov
EUR/CAD recently broke the uniform Triangle chart pattern which previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), strong Uniformity (7 bars) and medium Clarity (5 bars). EUR/CAD is expected to fall to the forecast price 1.4825 – in line with the earlier breakout of the combined support zone shown below.
As can be seen from the daily EUR/CAD chart below, the breakout of this Triangle coincided with the breakout of the support area lying between the round support level 1.5000 (which has been reversing the price from the start of December) and the 50% Fibonacci correction of the previous sharp upward impulse from November. This price area is acting as resistance zone after it was broken. The proximity of this resistance zone increases the probability EUR/CAD will continue to fall toward the forecast price 1.4825.
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