Actually this is quite possible. Because is has just finished a 7-wave trend on weekly long-term chart. A 7-wave trend has a very high possibility of reversal.
So now we consider the end of 7th wave is also the 1st wave of the new downtrend. USDCAD could make its 4th wave end beneath the red zone and start its 5th wave of the downtrend down to 1.2800-1.29500 zone.
This is a textbook of trend analysis and wave analysis in our CHANNEL STRATEGY. The way we analysis on USDCAD could help us to find out several swing trading opportunities by following the trend.
Now the new trading idea is waiting for signal to short USDCAD on its 5th wave down.
GOOD LUCK !!
LESS IS MORE!