Take a look at this daily chart, and you will see what I see: USD/CAD is barely 40 pips away from the 1.0780 lows, strong support zone for the pair. RSI around 24 in the daily, also show extremely over sold conditions in the pair. At this point we are accumulating also a 900 pips straight fall. Do you signs of reversal or an upside correction? I don’t. If pair manages to break under that 1.0780 area, downside pressure could accelerate and send the pair close to the lows 1.0600. The behaviour of the pair, is the key to determinate if we are going to see a strong rebound to the upside or not. As longer we see price hovering around actual level, bigger are the chances of a break. I have an eye on oil also: barrel is at $ 69.50 and the year high is around $ 72.70. If oil continues it’s rally ( and should approach to $ 75.00) USD/CAD will continue falling despite technical indicators or extreme conditions.
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