On June 4th we showed you a forecast of the USDCAD forex pair, saying that “after the end of wave C, we will be expecting another decline, probably below 1.0810.” When we said that, the chart of USDCAD looked like the one below.
USDCAD was trading around 1.0930, but we were expecting a decline below 1.0810, because the price action has formed a perfect regular flat correction and we know that corrections should be retraced completely. On the chart below you can see what happened.
Prices went a little higher to complete the whole pattern and then started their trip to the south. The target of 1.0810 had just been reached, but the probability of an even larger decline should not be underestimated.
