USD/CAD broke out below both the blue and the red support trend lines of the seemingly endless consolidation that formed a clear flag figure.
As I had written in a previous analysis of this pair: “All paths lead down”.
Since yesterday the pair has fallen with almost 200 pips, but in my opinion this is just the beginning of the move to the downside (that is, if the price of LCrude doesn’t get in the way, since USD/CAD is a petrocurrency)
From a technical analysis point of view, the first target of this drop should be around 1.2850.
Of course, we should keep in mind that this is the weekly time frame, so this target is either in the long term, or at the very least in the medium term.
At this stage I think that to the upside there would be only corrective movements and figures, which could give us the opportunity to open short positions from more suitable levels.
Since yesterday the pair has fallen with almost 200 pips, but in my opinion this is just the beginning of the move to the downside (that is, if the price of LCrude doesn’t get in the way, since USD/CAD is a petrocurrency)
From a technical analysis point of view, the first target of this drop should be around 1.2850.
Of course, we should keep in mind that this is the weekly time frame, so this target is either in the long term, or at the very least in the medium term.
At this stage I think that to the upside there would be only corrective movements and figures, which could give us the opportunity to open short positions from more suitable levels.
It's very bearish indeed.
ReplyDeleteExcellent analysis, thank you for sharing!
ReplyDeleteThank you for the analysis very helpful.
ReplyDeleteInteresting analysis, thanks.
ReplyDeleteGood post!
ReplyDelete