Cable still under the neckline. Good setups on the EURUSD and EURCAD!
Cable is having a beautiful head and shoulders pattern. The formation is already active as the price broke the neckline. We even tested that as a resistance. As long as we stay below the 1.408, the sentiment is negative and we should see a further drop.
EURCAD is also having a head and shoulders formation but the thing is that we did not break the neckline yet. That is what sellers are expecting and hoping for now. The breakout of the neckline will be a strong signal to go short with a nice risk to reward ratio. The target for this slide is more than 500 pips lower. Tempting, huh?
Since the middle of January, EURUSD is locked inside of the range between 1.218 and 1.254 (orange). We are waiting for the breakout, which can potentially bring us a very lucrative movement. The situation is interesting for the patient traders only cause it looks like we will have to wait for this breakout a bit.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis