Daily Forex Update: USD/CAD

The USD/CAD has broken the Channel Up pattern’s support on the short-term 15-minute intraday time frame. The short time frame indicates near-term weakness; however, it’s the short time frames that offer the first look at what could possibly build into a longer-term move. Autochartist’s Initial Trend reading of seven bars confirms the strength of the uptrend, and combined with the Breakout reading of only one bar we should not expect the reversal to have much follow-through. The uptrend line broke at 1.0009 (S), and prices are now finding support at the parity level (1.000), where each U.S. Dollar exchanges for exactly one Canadian Dollar. This level is also the initial support of Autochartist’s Forecast area (F) at 1.0001 (the Forecast area extends down to 0.9992).