Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

USD/CAD H&S Failure?

Published 11/10/2022, 02:09 AM
Updated 03/11/2024, 07:10 AM

With oil and risk assets coming under pressure today, the Canadian dollar has sold off, while the US dollar has risen across the board after its recent weakness.

As a result, the USD/CAD is on the rise and it may go on to invalidate the head and shoulders pattern that it had created a few days ago.

If we climb and hold above the neckline area above 1.3500 area then this will put the bears in a spot of bother. We could then see a sharp rally towards levels where the bulls’ stops might be resting.

USD/CAD Chart

Source: TradingCandles.com

If it plays out how I have described it above, then the first target would be around 1.3682, the base of the break down around the right shoulder area. Thereafter we might see a potential move above 1.3810 where the trapped short stops would be resting, and potentially even 1.40 – above the head of the H&S pattern.

Latest comments

People should not make analysis simply a simple movement is made. I doubt if this article took into cognizance the expected US CPI at the time of publishing
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.