USD/CAD Will Probably Reach the Support Trendline of the Channel

As you can see on the screenshot, the channel has formed on the weekly time frame and after the pair reached its resistance trendline it started moving to the downside again.

It is logical to reach the support trendline, its target being around 1.3150 – 1.3100.

The pattern within the channel resembles a pennant. I am saying “it resembles a pennant” rather than “it is a pennant” because the only thing that does not fit the characteristics of a pennant is its length – usually a pennant is shorter than the main trend it corrects and this is not case.

Either way, I think that if the pair reaches the support trendline and breaks below it then we can expect a move to the downside with limit of about 700 pips, which is the height of this pattern measured from its base.