By: Dima Chernovolov
EUR/CAD recently broke the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which reflects the significant Initial Trend (7 bars), average Uniformity (5 bars) and near-maximum Clarity (9 bars). EUR/CAD is expected to fall toward the forecast price 1.5094 – in line with the earlier downward reversal from the major resistance area highlighted below.
As can be seen from the weekly EUR/CAD chart below – the price earlier reversed down from the key resistance area located between the multi-year resistance levels 1.5800 (top of the previous weekly Shooting Star) and 1.5800 (which reversed the price twice sharply in 2018). The proximity of this resistance area increases the probability EUR/CAD will continue to fall toward the forecast price 1.5094.