Thursday, March 31, 2016

USD/CAD Is Falling towards the Support at 1.2650



Two months ago the pair formed a very clear shooting star candlestick on the monthly time frame, which was an obvious signal that it would start falling. Currently the pair is about to reach yet another target on its way down – the support at 1.2650, which coincides with (EMA)89 on the weekly time frame.



As we all know, however, the signals on the monthly time frame have long-term consequences, which is why I am almost certain that the support at 1.2650 wouldn’t be able to stop its descent for long and the pair will easily break below it. If this does happen, the next level of support is at 1.2570 – 1.2550, which is the middle line of Bollinger Bands on the monthly time frame.

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