Nice setups on the EURUSD, USDCAD and Gold

Unexpectedly hawkish Draghi brings volatility on the market and helps the EUR bulls to set yearly highs on many currency pairs.

EURUSD combined the fundamentals (Draghi) and technical analysis ( iH&S formation). The price climbed sharply. We came back above the mid-term up trendline and used this momentum to break the 1.129 resistance. In my opinion we first should test the recent resistances as a support and then go higher.

USDCAD is doing what was expected. We finally broke the lower line of the flag and the lower line of the channel up formation. Breakout was strong and legitimate. We are 120 pips lower but still there is a place for 100 pips more.

Wednesday is a bit too early to look at daily candles but we have to be ready. Gold is about to have two weekly hammers in a row on a very important supports (trendline and neckline). If nothing will change till the end of the week, we can have a powerful buy signal here.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis