Tuesday brings us significant weakness of the Canadian Dollar, which is quite surprising as this movement has no clear fundamental background. Usually technical analysis cooperates with fundamentals but this time, the movement is almost entirely technical, at least from my point of view.
Let’s start with the EURCAD, where the common currency is moving higher, testing an absolutely crucial horizontal resistance level. I mentioned this resistance in one of my previous short videos. The 1.544 level on the EURCAD was an upper border of the sideways trend, present here since April. The price closing the day above the yellow line will be a super strong, long-term buy signal.
Next up is the CADCHF, which we also mentioned recently. The price here is in a full pessimistic mode after the bearish breakout from the flag and bearish breakout from the descending triangle pattern. The CADCHF closing the day below the lower line of the triangle will bring us a proper sell signal.
Lastly, I will mention the USDCAD, which was about to create the right shoulder of the head and shoulders pattern but the weakness of the CAD delayed those plans. Currently, the right shoulder is being transferred into a small inverse head and shoulder with the price testing the neckline as we speak. The price closing above the 1.362 level, can give us a 90-pips-buy-signal.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire