The move to the upside from a few days ago was very short-lived and the pair formed a correction of only about 100 pips, before it fell to test the support trend line that can be best seen on the daily time frame.
There are less than 30 pips until USD/CAD reaches that trend line, and the expectation is that the pair will test it again, after failing to break below it for the past nine months of consolidation.
I think that if it does break below the trend line and manages to remain under it then its first target to the downside will be at 1.3000. In my opinion, however, the potential for a move to the downside is much greater than that, and the pair could continue dropping towards 1.2500.
If the pair fails to break below the trend line and remain there it will, I think, return within the range and it will start climbing towards 1.3350.
For the moment the latter scenario seems a lot less likely.
That's good to know, thank you.
ReplyDeleteInteresting article!
ReplyDeleteIt could be a good turning point.
ReplyDeleteTaking note of key levels to keep track and follow up.
ReplyDelete