Friday, June 29, 2018

USD/CAD Finally Began The Expected Depreciation

The pair has reached the first target to the downside at 1.3150, but in my opinion the depreciation is not over.

In case the pair breaks out below the support I think it will head for the next support level which is the diagonal trend line marked with a thin red line (that is the 1.2980 – 1.2950 zone).

On the D1 time frame one can also notice a Gartley butterfly pattern, the limit of which is point A. With the caveat that not nearly all limits of Gartley butterfly patterns are reachable, it would be interesting to see whether the pair will reach this one. If that happens we should expect a depreciation to 1.25621.

In the alternative scenario after a drop to 1.2850 the pair would renew the move north.