The almost five-month long corrective move to the upside of USD/CAD appears to be at its end. In the past week the pair fell with almost 250 pips and at the moment it is at the support at 1.2950 that can be seen on the weekly time frame.
I think that the pair will likely break below that level with ease and the move to the downside will continue at least until it reaches 1.2850 or even 1.2800.
The more optimistic but also less probable scenario is for the drop to continue all the way to the zone around 1.2650.
It’s also interesting to examine the situation on the monthly time frame, where the pair has been moving around the strong support zone around the middle line of the Bollinger Bands indicator for the past five months or so and it has been forming spinning top bars. Now we need to wait and see how the August bar will close to be able to figure out the USD/CAD movement in the long-term.
Thanks for the analysis.
ReplyDeleteGood analysis, thank you.
ReplyDeleteVery helpful!
ReplyDeleteInfromative article!
ReplyDeleteGood assessment!
ReplyDeleteGood posts, very helpful for all traders.
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