Daily Forex Update: USD/CAD

By: Dima Chernovolov

USD/CAD continues to fall inside the uniform Falling Wedge chart pattern was recently identified by Autochartist on the 30-minute charts. Autochartist rates the Quality of this Falling Wedge at the 3 bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (7 bars) and lower Clarity (1 bar). USD/CAD is expected to fall further inside this chart pattern – continuing the earlier breakout of the support area described below.

As you can see from the daily USD/CAD chart below, the price earlier broke through the support zone located between the strong support level 1.3260 (which has been reversing the price from March) and the 61.8% Fibonacci correction of the sharp upward impulse from February. This price area is acting as resistance zone after it was broken. The proximity of this resistance zone increases the probability USD/CAD will continue to fall inside this Falling Wedge.

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