Daily Forex Update: USD/CAD

By: Dima Chernovolov

USD/CAD continues to fall inside the daily Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (one bar), above-average Uniformity (6 bars) and maximum Clarity (10 bars). USD/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 USD/CAD chart below, the price earlier reversed down from the resistance area located between the pivotal resistance level 1.2900 (which has been reversing the price from the end of October), upper daily Bollinger Band and the 50% Fibonacci retracement of the previous downward impulse from May. The proximity of this resistance area increases the probability USD/CAD will continue to fall inside this Down Channel.

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