USD/CAD reverses down from 1.0600; set to fall to 1.0408 in 3 days

As can be seen from the following trade alert USD/CAD, the price just broke the Rising Wedge chart pattern identified by Autochartist on the 4-hour charts. USD/CAD is expected to reach the target level 1.0408 in the 3 trading days. Autochartist set the stop-level for this forecast at 1.06333 (B, the top of chart pattern). This point was formed last Friday when USD/CAD turned down from the resistance area embracing the long-term resistance level 1.0600 (which previously reversed the sharp weekly upward impulse in September of 2011) – located near the weekly upper Bollinger Band, as you can see on the next chart below. The pair has to break the intervening support level at 1.04705 (point A) in order to reach the target level 1.0408 in the next three days.


The weekly USD/CAD chart below highlights the aforementioned technical price levels:


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