EURCAD and USDCAD – H&S Formations Work!
Today, as always, we do have three good trading occasions. Two of them are with CAD and have nice head and shoulders patterns, which are already up and running. EURCAD is the first one. Here, the price broke the up trendline (red), neckline (blue) and the horizontal support (orange). After that, we got a strong drop and then, a reversal testing the recent support as a resistance. The test was positive for the sellers and currently, the price is making new weekly lows. The potential target is 380 pips lower.
USDCAD had a similar setup. The broken neckline and then, the comeback testing it as a resistance. There was a small difference though. On EURCAD sellers were much stronger. On the USDCAD, the price managed to climb back above the neckline which was scary for many bears. At the end of the day, they managed to push the price lower but for sure they had a bit of stress. Sell signal is on.
The last one is the NZDUSD, which broke the mid-term down trendline and is heading towards the yearly highs. After bouncing off the 38,2% Fibo, the chances that we will get there are very high.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
