USD/CAD Reached the Top of the Trend Channel and Started Falling

It’s logical for the pair to continue moving to the downside towards the support trend line at the 1.2850 level.
That by no means should make us think, however, that the range will end with this drop.

In my opinion there will be another move to the upside once the pair reaches the above mentioned 1.2850 level and USD/CAD will reach 1.3300, or a level even higher than that, around 1.3400 – 1.3500.

If this range that has continued for months is actually forming a flag we can conclude that once it ends there will be a new drop towards 1.1800 – 1.1900.

For the time being, however, the prognosis is for a move to the downside, because the rest of the movements will form on the weekly and the monthly time frames, which means they will take place over a long period of time.