Thursday, May 10, 2018

The USD/CAD Depreciation Began

The longer the time frame is, the larger the movement after a signal is, but also the longer one has to wait for that movement to begin.

This is exactly what happened on the USD/CAD charts, after at the end of last month the pair formed a signal consisting of two monthly bars: a shooting star and a hanging man, which warned for an impending depreciation>>> .

Before said depreciation began the pair once more tested the resistance at 1.30 and at 1.29972.
The first strong support on the way down is at 1.2650, but in my opinion the bearish trend will continue until the pair reaches the potential trend line of the channel (in blue) that is forming on the chart. And that means another 300 – 320 pips drop.

Once we see the way the pair develops when it reaches the support trend line we may be able to analyze its further movement.