Thursday, 4 February 2016

USD/CAD: A Reversal?




USD/CAD continued falling and eventually reached and broke below the support levels at 1.3850 and then the one at 1.3690. In my opinion the pair is headed for the next level of support at 1.3600. More importantly, the monthly time-frame reveals a shooting star candlestick that has formed right below the resistance at 1.4700. Under these circumstances, can we talk about a reversal of the bullish trend? I think that is quite possible. If that is indeed the case, then the move to the downside will continue for the foreseeable future, possibly towards the support at 1.2600.

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