This Is Just The Beginning Of The USD/CAD Drop

USD/CAD completely fulfilled my expectations>>>  although the drop reached not only 1.3240, but much lower – 1.3160. After a small correction in the zone around 1.3160 – 1.3200, which is visible on the weekly time frame, the pair continued its bearish movement and my expectation is that the next strong support zone will be around 1.3000 – 1.2970.

I think that after the drop to that level the limit of the blue trend channel will be reached, and that limit is around 430 pips, but the pair will not reach the limit of the red flag that has been developing for a year (from  1st  May 2016 to 19th May 2017), the limit of which is 700 pips.

However, considering that the first breakout below that flag was at 1.3170 and the development of the pair gave us an opportunity to open short positions from better levels, we could say that that the drop which is part of an attempt to reach its limit is just beginning and we could expect the pair to reach 1.2450 in the medium term.