USDCAD 2 Month Picture: Butterfly Reversal Developing

If price action on the Daily Chart can push through 1.30 and 1.28, is it possible that we might see 1.16 by the end of August? Legs AB and BC have completed within a butterfly reversal pattern in an almost ideal fashion (see chart) with only leg CD remaining to complete. The bear flag retrace has been broken and price action over the last two days has been strong to the downside. Price action may face some resistance at the two purple lines. If CD does complete, equal in price action and time to AB, then we could expect to see a reversal in trend around 1.16 in late August.

Caution: price action could turn around before completing the pattern. If price action extends beyond 'D' then the pattern is no longer valid.

This is not trading advice.