USD/CAD: sell target - 1.3000
By: Dmitriy Chernovolov
- USD/CAD falls inside minor corrective wave (ii)
- Next sell target - 1.3000
USD/CAD continues to fall strongly inside the active minor corrective wave (ii) – which started recently - when the pair reversed down from the resistance level 1.3400 (as you can see from the daily USD/CAD chart below). The price earlier broke below the support zone lying at the intersection of the support level 1.3200 and the support trendline of the daily up channel from June. The breakout of this support zone is likely to accelerate the active wave (ii).
With the clear bearish divergence visible on the daily RSI indicator - USD/CAD can be expected to fall further toward the next sell target at the round support level 1.3000 (which reversed previous wave (ii) in September).