EURJPY and USDCAD still wait for the breakout (and a trading signal…)

Speculations about John Taylor possibly being the next FED chairman help the USD to gain some strength. It can be especially seen in the Dollar Index, which bounced from the 92.75 support using a double bottom pattern and started forming the right shoulder of the iH&S pattern. There is no buy signal yet but the possible breakout of the 94.2 resistance should trigger one.

We were talking about the EURJPY yesterday. The pair was approaching an important support so we were getting ready for a breakout with a pending order below the support. That was a good call to wait for a breakout rather than sell with instant execution as… the breakout did not happen and the price went higher. Currently, we should approach the upper line of the correction pattern.

USDCAD proved the 1.259 to be a strong resistance yesterday. That is why it is going to be even more exciting to track this pair and wait for the breakout. We now know that both: the resistance (green) and the support (blue) are important so breakout should be powerful and should allow the price to create significant directional movement.

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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