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USD is back! USDCAD is a small step away from the strong buy signal

Tomasz Wiśniewski

As expected yesterday, the EURUSD declined sharply creating a strong shooting star on the daily chart. That opens a way to the bigger correction aiming the closest support on the 1.1730. It looks like bears are very determined so the downswing can be actually stronger and can possibly aim the 50% Fibo along with the upper line of the flag.

USDCHF also reversed sharply and used for that a super important support from the January, March, and May. The price is now creating a bullish flag. Breakout of its upper line should bring us a buy signal.

USDCAD is also very close to having its own buy signal. What we have here are a bounce from the up trendline, bullish wedge and the inverse head and shoulder. All we need for a proper signal is the breakout of the upper line of the small flag and the resistance on the 1.277.

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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