Fundamental analysis

USD/CAD: deeper drop could be invalidated

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USD/CAD Down Channel!

The USD/CAD pair dropped deeper after falling below the uptrend line. I’ve told you in my previous analysis that the price could develop a larger downside movement if it makes a new lower low, if it drops and stabilizes below 1.3503.

As you can see on the h1 chart, the rate failed to reach this downside obstacle signaling exhausted sellers. The currency pair has found demand around the channel’s downside line and now it has turned to the upside and it could approach and reach the channel’s upside line.

USD/CAD Trading Conclusion!

Dropping and stabilizing below the channel’s downside line and below 1.3503 could really confirm a major drop.

Jumping and stabilizing above the downtrend line and above 1.3744 may signal further growth and brings new buying opportunities.

The material has been provided by InstaForex Company –