Unsurprisingly USD/CAD Renewed Its Move To The Downside

After testing the trend line it broke out below for a month, USD/CAD has been moving to the downside with more and more confidence for the past week, and in the last three days it has dropped with about 200 pips.

If we look at the weekly time frame, we will see it is important for the pair to break out below and remain under the support zone around 1.3270 – 1.3250. In case that does happen, the next support level that USD/CAD needs to break out below is the zone around 1.3000 – 1.2980. The pair rebounded from that zone once already and moved back to 1.3530.

If the pair breaks out below 1.2980 successfully this time around, we could expect another drop to 1.26 – 1.25 and even lower.

But that is a long-term prognosis. For the moment let’s focus on the successful breakout and the pair remaining below 1.3250.