Pair’s bearish flag pattern breakout on Aug 16 followed by a re-test and failure to re-enter flag formation this week suggests a fresh sell-off to Aug 18 low of 1.2764 is likely, where a violation would prove fatal and open doors for 1.2460 (recent cyclical low).
Only a day end close above 1.30 (multiple daily lows in late April/early Aug) would suggest bearish invalidation.
Craig Erlam, Senior Market Analyst at Oanda, who joined us on today’s finance show (see here - Opec action unlikely, 1.30 a make or break level for CAD - www.youtube.com/watch?v=wK8thq4-... & www.tiptv.co.uk) also noted 1.30 as a make or break level for the USD/CAD pair.
Only a day end close above 1.30 (multiple daily lows in late April/early Aug) would suggest bearish invalidation.
Craig Erlam, Senior Market Analyst at Oanda, who joined us on today’s finance show (see here - Opec action unlikely, 1.30 a make or break level for CAD - www.youtube.com/watch?v=wK8thq4-... & www.tiptv.co.uk) also noted 1.30 as a make or break level for the USD/CAD pair.