Last week analysis gave more than 200 pips of profit. I wrote: “…level is located at 1.8400 but it is likely that it won’t stop declines and price should continue downward movement. Next supports are located at: 1.8260, 1.8160. The last indicated level is strong enough and it should cause rebound.”
So it happened, however after today’s BoC meeting where rates were left unchanged, huge volatility has occurred. Indicated support was broken, but you can see the strength of this level at wider time-frame e.g. D1. Rebound should be strengthened by the fact that since the beginning of January there wasn’t any bigger corrections. There is every indication that price may return in a moment above 1.8160. Next support is located at 1.8040, but when rebound will occur nearest resistances are located at 1.8290, 1.8400, 1.8540.
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Time-frame M30
Time-frame D1
