Wednesday is a Head and Shoulders day in our analysis! Today we do have three great trading occasions for you based on this popular pattern.
First one is the USDCAD, where the price created a big Head and Shoulders pattern. I bet that many traders saw that and were expecting the bearish breakout. That is what happened yesterday. As for now, the price is making lower lows and highs which is a positive sign. Sell signal looks legitimate and sustainable.
Next one is the AUDJPY, where we do have an Inverse Head and Shoulders formation. The price broke the neckline yesterday along with the horizontal resistance on the 81.9. The price is aiming higher and making higher highs and lows. Currently, we are testing the 81.9 as a support. Once the buyers will succeed with the bounce, we will be ready for another bullish wave here.
CADJPY is the third one and here we do have a combination of a strong CAD (from the USDCAD) and the weaker JPY ( from the AUDJPY). The price broke the mid-term down trendline (red), the neckline (blue) and the horizontal resistance (green) on the 82.8. The sentiment is definitely positive.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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