Tuesday, April 12, 2016

USD/CAD Completely Fulfilled My Expectations and Fell Towards 1.2650



There are about 150 pips left until the pair reaches that level, which, if you look at the weekly time frame, is very little.

Since the downwards trend has been pretty strong so far, I doubt the pair will stop falling once it does reach that support ( (EMA) 89 on the weekly time frame, visualized with a green line) as well as the middle line of Bollinger Bands on the monthly time frame  (the blue line).


It is far more probable that it will continue falling for another 50 pips below the support and it will stop around 1.26 or even below that level. That, however, would be an excellent opportunity to trade the retracement, since I do not doubt that the pair would climb back to test the support it broke (1.2650) which would become a level of resistance instead.

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