Intraday USD/CAD Breaking Downtrend Resistance Line

The 15 and 60 minute charts of the USD/CAD indicate that both currencies are breaking through higher in Continuation Channel Down chart patterns. This as the Canadian Dollar loses ground against the U.S. Dollar.







These are perfect examples of when the Initial Trend readings (X and Y) can dictate the likelihood for a continuation versus stall and a potential reversal. Note that for both chart pattern alerts the Initial Trend (X and Y) were very low. This suggests that the trend is weak. There is not much more selling pressure behind the downtrend that the 15 and 60 minute USD/CAD was in.

When a trending chart pattern appears with good uniformity and clarity but with a low Initial Trend, look out for a stall and possible reversal of the trend. With stronger Initial Trends chart pattern channels and chart pattern wedges may follow.

On both charts the trigger occurred above the psychologically significant level of 1.0700. This will be important support for the breakout and downtrend reversal.

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