USDCAD currency pair and 5 consecutive candles on the 1-hour chart closed below the lower Bollinger band custom settings. The above chart also shows that formed the downward swing. Breaking short-term low of the downward movement (1.3170) may be the signal for further declines.
A potential target will be positioned at 100% extension of downward movement, which was mentioned a moment ago, so around the 1.3100 level. Setup will be negated when the candle on the 1-hour chart will close above the lower Bollinger Bands.
It should bear in mind today’s FOMC statement and decision on interest rates and increased volatility that can occur on a pair quoted in US dollar.
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