FX_IDC:USDCAD US DOLLAR / CANADIAN DOLLAR
Hourly chart shows Leg D has resumed and it comes around 1.2950 levels (78.6% of XC). Note that Leg C has risen to 1.417. The rule says candle should not close above 1.414. Thus, the formation is valid.
- Hence, spot could drop to inverse head and shoulder neckline level around 1.3034, which if breached would expose rising support at 1.2977 (just few pips away from Leg D level of 1.2950).