After a short-term correction in favour of the USD USD/CAD will probably renew its move to the downside.
On the D1 time frame the pair has reached the resistance marked by the Bollinger Bands indicator in the zone around 1.2750 and it has not been able to break out above it, forming a pair of daily bars that are a rather clear reversal pattern.
Оn the H4 time frame the pair has dropped with about 100 pips, after which there was a short-term correction and I think that there will likely be a new drop (which will form three waves to the downside). If my supposition is correct, then the first target to the downside should be the zone around 1.2615 – 1.2600.
If the drop continues, the next target will be in the zone around 1.2580 – 1.2550, which is a strong support zone visible on the D1 time frame.
Downtrend still in place.
ReplyDeleteThe pair is rallying again.
ReplyDeleteNice rally indeed.
ReplyDeleteA good post with good insights into the situation.
ReplyDeleteExcellent analysis.
ReplyDeleteVery helpful analysis, thank you for sharing!
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDelete