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USD/CAD: fallen to possible reversal zone

   
USD/CAD has broken lower, pushing down below the June 10 lows in another bearish leg down.

Whilst it is tempting to jump on the back of this down-trend, its now probably too late without the risk of a reversal substantially offsetting the possible rewards.

For starters the pair has now reached the minimum price expectations using the first leg down from the June 5 highs at 1.2526, and it has also almost reached the 61.8 fibonacci level of the previous up-trend – a fairly important support level.

So whilst it may go lower there is also a risk that it is in the reversal zone and could start to move higher again, therefore I’d currently recommend standing aside.
USDCAD18

   
USD/CAD has broken lower, pushing down below the June 10 lows in another bearish leg down.

Whilst it is tempting to jump on the back of this down-trend, its now probably too late without the risk of a reversal substantially offsetting the possible rewards.

For starters the pair has now reached the minimum price expectations using the first leg down from the June 5 highs at 1.2526, and it has also almost reached the 61.8 fibonacci level of the previous up-trend – a fairly important support level.

So whilst it may go lower there is also a risk that it is in the reversal zone and could start to move higher again, therefore I’d currently recommend standing aside.
USDCAD18



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