USD/CAD Price Analysis: Refreshes five-week low around mid-1.2400s on bearish flag confirmation

USD/CAD drops to the clean low in 5 weeks whilst flashing 1.2450 figures on the chart, down 0.19% intraday, whilst heading into Monday’s European session.

The pair’s sustained drop under a three-day-long ascending vogue channel, section of the stated formation, confirms the bearish flag and directs the quote in addition closer to the south.

Although February 2018 low surrounding 1.2255 seems as the theoretical preference on the bearish flag breakdown, the each year backside shut to 1.2365 may additionally provide an intermediate halt all through the south-run.

During the quote’s corrective pullback, which is much less in all likelihood thinking about the Momentum indicator and a sustained damage of a bearish chart pattern, the referred to channel’s assist line close to 1.2475 will become the close by hurdle to watch.

However, any in addition healing past 1.2475 wants to move the 200-HMA stage of 1.2520, now not to neglect the channel’s top line close to 1.2530, earlier than difficult a one-week-old horizontal resistance close to 1.2540.

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