EURCAD has to break strong resistance to remain bullish
Hello friends!
Looking at the weekly chart, you can see that EURCAD has been bullish since Feb 2017 after breaking an inverse H&S and made a significant bullish move of 13.5%. The last two times that we were in this spot, in March 2014 and Jan 2016 the pair made a nice H&S pattern and moved all the way down to Aug 2012 rising support line. Now we are in the same spot with the only difference that this time we also have 1998 resistance level above the major resistance level.
Perhaps the easiest option for this pair is to return lower from here after make another beautiful H&S like the last two times. However if EUR gains, this pair can rise an additional 4% until it gets to the 1998 resistance level where finally this pair can return to the lows.
Good luck and have a great trading week,
Ehsan
Looking at the weekly chart, you can see that EURCAD has been bullish since Feb 2017 after breaking an inverse H&S and made a significant bullish move of 13.5%. The last two times that we were in this spot, in March 2014 and Jan 2016 the pair made a nice H&S pattern and moved all the way down to Aug 2012 rising support line. Now we are in the same spot with the only difference that this time we also have 1998 resistance level above the major resistance level.
Perhaps the easiest option for this pair is to return lower from here after make another beautiful H&S like the last two times. However if EUR gains, this pair can rise an additional 4% until it gets to the 1998 resistance level where finally this pair can return to the lows.
Good luck and have a great trading week,
Ehsan