Autochartist has recently identified the Clear Down Channel chart pattern on the daily USD/CAD charts. The overall Quality of this chart pattern is measured at the 6 bar level as a result of the strong Initial trend (rated at the near maximum 8 bar level), average Uniformity (5 bars) and higher Clarity (7 bars). This chart pattern continues the previous sharp upward price impulse from the major long-term support level 0.9400 (which had reversed the previous long-term downtrend in July of 2010 as well as in November of 2007, as is shown on the third chart below). The bottom of this chart pattern (point D on the chart below) formed when the pair reversed up from the combined support area made out of the lower support trendline of this Down Channel, former strong support at 0.9900 (which had reversed the pair up in October of 2011) and the 61.8 % Fibonacci Retracement of the aforementioned preceding upward price impulse from the major level of support 0.9400. The pair is expected to rise further.
The following daily and weekly USD/CAD charts demonstrate the aforementioned technical price levels:
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