USD/CAD Today

Not all traders prefer to trade on the large time frames – many would rather open positions and trade intraday short-term figures, after which they can sleep in peace without worrying about an open position.

Here is one such figure on the USD/CAD H1 time frame that traders can use – a flag that appears complete with the pair having reached its trend lines of support and resistance four times and it has broken out below the support trend line.

The height of the flag at its base is around 80 pips, which means that if the pair reaches its limit it should fall to 1.3240.

I think that if the pair continues falling it could test the local support zone around 1.3180.
In the alternative scenario the pair will rally and test the support trend line of the larger red trend channel on the daily time frame.