FX.co ★ USD/CAD: downside continuation activated

USD/CAD Massive Drop!

The USD/CAD pair is dropping like a rock and it seems unstoppable. You knew from my analyses that the price could drop deeper after falling below 1.2804 former low. In the short term, it has moved sideways before resuming its downside movement.

Personally, I've drawn a downtrend line. The price could approach and reach fresh new lows as long as it stays under this line. The 1.2719 represented a static downside obstacle. Ignoring this level signals strong sellers.

USD/CAD Trading Conclusion!

USD/CAD activated more declines after dropping below 1.2719 former low. After its massive drop, we cannot exclude minor rebounds. A minor growth could help the sellers to catch a new downside movement. 1.2600 psychological level could represent a potential downside obstacle and target.