Weekly Forex Update: USD/CAD

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 an above-average 6 bar level. This is a result of the following values of all the quality indicators which contributed: Initial Trend (5 bars), Uniformity (5 bars) and Clarity (7 bars). A higher Clarity of this chart pattern reflects the strength of the prevailing bearish sentiment affecting the pair during the development of this chart pattern. The top of this chart pattern formed at a combined resistance level. This was made up of the longer-term down trend resistance line, 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 downward impulse of this Falling Wedge broke through the parity giving a signal for the continuation of the prevailing down-trend. The pair is currently trending below the parity (having just reversed from it with a Shooting Star Candlestick pattern) and is expected to fall further.