USD/CAD - bulls are back, but a flag pattern suggests that the falls are not finished
After correction of 50% previous upward movement, at the chart occurred a candle with long bottom shadow. Such price action candles predict rebound. So it happened and for a week upward movement continues. However there is one concern. At time-frame H4 price formed flag pattern in a direction opposite to the previous movement (blue on the chart). Flag pattern like that usually is break below and it is likely that previous downward movement will be continues. Scenario of downward movement may be connected with test of uptrend line (orange on the chart).
Time-frame H4
Time-frame D1
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.