USD/CAD Finally Started Falling

The impractical thing about trading on the large time frames is that everything develops very slowly and one needs to be very patient.

Despite that, one feels satisfaction when their prognosis comes true and the expected movement does occur, the way it happened with USD/CAD.

I think that the barbed wire pattern finally developed fully and the last bearish bar from yesterday 29th March 2017 completely engulfed the bodies of the last ten daily bars before it. In my opinion, that is the beginning of the expected move to the downside.

Since in this case I am examining the movement on the daily time frame, I think that the first target to the downside is 1.3250, but that is a support that shouldn’t be too difficult for the bears to break out below on their way down.

I think that the target after that is around 1.3160 – 1.3150.

Let me also remind you of my expectation that the limit of the flag on the weekly time frame is around 1.2450.

Of course, these are 900 pips and obviously this is at least a medium-term target.