Tuesday, November 01, 2016

I Expect USD/CAD to Fall Today

The pair hasn’t been able to break above 1.3415 for three days now and after it formed a pair of doji bars (the third hasn’t closed yet) we could accept that it is very likely for the pair to rebound from that level and move to the downside.

On the four-hour time frame there is a pennant and USD/CAD has already broken below it although during the European session the pair retraced to test the breakout level.

If my analysis is correct and the pair reaches the 112 pips limit of that pennant, then we can likely expect a drop towards 1.3266.

 I think that drop will most likely start, if it starts at all, at the beginning of the American session, since both currencies are very popular for both investors and traders on the American continent.