By: Dima Chernovolov
EUR/CAD continues to fall inside the hourly Descending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 5-bar level – which reflects the slow Initial Trend (2 bars), average Uniformity (5 bars) and significant Clarity (7 bars). EUR/CAD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily EUR/CAD chart below – the price earlier reversed down from the resistance area lying between the key resistance level 1.5345 (upper boundary of the sideways price range from the start of may) and the upper daily Bollinger band. The proximity of this resistance area adds to the probability EUR/CAD will continue to fall inside this Descending Triangle.