Yesterday the USD/CAD pair fell with almost 140 pips and then formed a corrective flag, but today it broke below that flag and it seems that the move to the downside will continue.
The height of that flag is around 60 pips, and by projecting these 60 pips from the breakout level at 1.2876 we can ascertain that its limit is around 1.2815.
If we take a look at the weekly time frame, however, we will notice that the strong support zone is at 1.2650. Of course, the pair could stop dropping higher, especially considering its correlation with LCrude.
Once thing is certain – LCrude continues climbing, and CAD, also known as a petrocurrency, continues dropping.
Good point! I´ll be watching to those levels.
ReplyDeleteGood posts, very helpful for all traders.
ReplyDeleteVery helpful analysis.
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ReplyDeleteI agree, it will likely continue moving to the downside.
ReplyDeleteGreat assessment!
ReplyDeleteInteresting read!
ReplyDeleteGood analysis.
ReplyDeleteVery good post.
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