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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
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