USD/CAD continued “persisting” and testing the trend line it broke out below, but could not break out above it yet again and as you can clearly see on the H4 time frame it fell with nearly 90 pips after its failure to do so.
I think that that regardless of how long this trend line test continues, the pair will continue falling, as I have already mentioned, and if the limit of the flag is reached then we should see a drop below 1.2500.
Considering that the flag is a trend-continuation pattern, it is possible for the move to the downside to be quite a bit deeper in the long-term – toward 1.2200 or even toward 1.2000.
For the moment, however, the first targets to the downside are at 1.3300, 1.3250 and 1.2950.
Well spotted! I'll keep it in mind.
ReplyDeleteIt bounced off from 1.3300 again.
ReplyDeleteInteresting levels to be watchful of, thanks for the info.
ReplyDeleteInformative review on current market conditions.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteExcellent analysis as usual!
ReplyDeleteGood insight.
ReplyDeleteGood post!
ReplyDeleteA gap down.
ReplyDelete