Daily Forex Update: USD/CAD
By: Dima Chernovolov
USD/CAD recently broke the Rising Wedge chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist rates the Quality of this Rising Wedge at the 6 bar level – which is the result of the medium Initial Trend (4 bars), and above-average Uniformity and Clarity (both rated at the 6 bar level). USD/CAD is expected to fall toward the forecast price 1.3490 – in line with the technical analysis shown below.
As can be seen from the daily USD/CAD chart below, the top of this Rising Wedge formed inside the resistance zone lying between powerful resistance level 1.3600 (which has been reversing the price from November) and the upper daily Bollinger Band. The proximity of this resistance zone and the overbought reading on the daily Stochastic indicator increase the probability USD/CAD will continue to fall toward the forecast price 1.3490.
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