Saturday, June 23, 2018

The Expected USD/CAD Correction Began, The Target Is At 1.30

After one last rally USD/CAD finally began the long-awaited correction.

There is little left until it reaches its first target to the downside (the pale blue line of the breakout of the trend channel), and I think the pair will reach it on Monday night (GMT) once the new trading week begins.

The next targets to the downside, in my opinion, are 1.3060 and1.2970 – 1.2950 so that it would test the breakout of the red trend line.

Also, if we examine the monthly time frame, 1.2970 is a strong support level. We should be very careful around that zone, because we could expect a renewal of the upward movement to 1.3650 – 1.3680.

The alternative scenario is for the depreciation to last to 1.2280 – 1.2250.