Wednesday, December 27, 2017

USD/CAD May Continue Depreciating

USD/CAD could not break above the resistance at 1.2920 and after forming a triple top at that resistance on the D1 time frame it started depreciating.

At the moment the pair is in the support zone around 1.2620 – 1.2660 from which it has rebounded multiple times for the past nine weeks.

I think that in case it breaks out below that zone and remains below it then the depreciation will continue toward the zone around  1.2460 - 1.2400 (in red) where is the next support.

In the alternate scenario the pair will rebound from the current support and it will attempt to break out above 1.2920. In my opinion this scenario is not very likely and we will see a continuation of the depreciation, but surprises are not out of the question.