USD/CAD is moving down inside the Falling Wedge chart pattern identified by Autochartist on the daily chart. The Quality of this chart pattern is rated at the above-average 6 bar level - which is the result of the following values of all the quality indicators that contribute to its value: Initial Trend (5 bars), Uniformity (5 bars) and Clarity (7 bars). Higher Clarity of this chart pattern reflects the strength of the prevailing bearish sentiment affecting the pair during the development of this chart pattern (for the last 124 days).
The top of this chart pattern formed at the combined resistance level made out of the logger-term down trend resistance line (starting on 07.08.2009) and the 38.2% Fibonacci Retracement of the preceding downward trend (which started at the same time as the aforementioned trend line and stopped at the parity). The latest down impulse of this Falling Wedge broke thought the parity giving the signal for the continuation of the prevailing down-trend. The pair is currently trending below the parity (having just reversed from it with the Shooting Star Candlestick pattern) and is expected to fall further in the nearest time.
Autochartist has also identified the Down Channel chart pattern on the daily USD/CAD chart. The Quality of this chart pattern is also rated at the 6 bar level. The second connecting point for the upper resistance line formed at the end of the ABC correction to the first sharp down impulse of this Down Channel. This ABC correction was completed by the second strong down impulse which increases the chances that the down-trend will continue in the coming sessions.
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