As I thought it would, USD/CAD reached the support trend line of the blue trend channel, which once again confirmed the bearish slant of this pair.
The rebound from that support is logical but the important part is to watch whether the pair will actually break out below the support trend line or not. If it does and that breakout is confirmed, the possibility for a larger drop increases. In that case, we could expect a move to the downside for about 650 pips. In the alternate scenario the pair will rebound from the trend line and it will continue rallying toward the resistance (blue) trend line.
For the moment I am not analyzing the larger (red ) channel, which has a limit of over 700 pips. The perspective of the pair to reach that limit is still valid, but it seems to be a possibility in the long term.
Interesting levels to be watchful of, thanks for the info.
ReplyDeleteGreat analysis, thank you.
ReplyDeleteVery useful information, thanks!
ReplyDeleteEnjoyed the article, thank you.
ReplyDeleteGood insight.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteThanks for the tips.
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