By: Dima Chernovolov
EUR/CAD continues fall rise inside the 4-hour Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity (8 bars) and significant Clarity (7 bars). EUR/CAD is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the strong resistance area shown below.
As can be seen from the daily EUR/CAD chart below – the price earlier reversed down from the resistance area located between the key resistance levels 1.5800 and the upper daily Bollinger Band. The proximity of this resistance area and the clear bearish divergence on the daily Stochastic indicator increase the probability EUR/CAD will continue to decline inside this Falling Wedge.