Rising of USD against the Cad was initially marked by some patterns. Inverted Head & Shoulders pattern and Falling Wedge pattern. Referring to the inverted H&S pattern, (target price can be seen in the picture) the target is at the resistance that should've be strong. But when referring to the falling wedge pattern, (target price can be seen in the picture) the target is higher. And the current price position is more or less within the target price of the falling wedge pattern.
What's my prediction for the next move?
I predict that the price would drop at least to close the gap that occurred a few days ago, and potentially drop deeper to the neckline of the inverted head & shoulders pattern, so that more or less would place the price on the uptrendline channel. I predicted it because I saw the last candle in the daily timeframe, the Dark Cloud Cover candle (one of the reversal candle patterns), which was followed by very liquid volume. This scenario would be more accurate if the support line (rising target of inverted head & shoulders) is successfully broken.
What's my prediction for the next move?
I predict that the price would drop at least to close the gap that occurred a few days ago, and potentially drop deeper to the neckline of the inverted head & shoulders pattern, so that more or less would place the price on the uptrendline channel. I predicted it because I saw the last candle in the daily timeframe, the Dark Cloud Cover candle (one of the reversal candle patterns), which was followed by very liquid volume. This scenario would be more accurate if the support line (rising target of inverted head & shoulders) is successfully broken.
Comment:
Price movement did not match prediction. The price continued move up touched the highest price resistance in January 2016 at 1.46670. If the closing of the daily bearish candle today covers 50% or more of the green candle the previous 2 days, it is likely the price would continue to fall.