There is a strong desire to buy this currency pair. Last week, in one of our analyses we talked about “head & shoulders” reversal pattern forming, but at that time we lacked the “right shoulder” to complete it. But after today’s fall, we have the “right shoulder”. We can try to buy now, the stop is about 80-100 points. RSI indicator is testing the line of a rising trend, which is a sign of a possible rising price movement. The potential target is 500 points. After the neckline is broken, we’ll increase the amount of currency pair purchase.
It seems like Euro completed forming a rising pattern. The channel is broken here, there was a heavy decline of the rate and currently we can expect a return to channel’s broken level in the area of 1.30-1.3050. After that, we can try to buy the pair. At hourly currency trading chart we can see the descending pattern covering the targets, so we can possibly expect a correction very soon. We recommend you to buy only if you are an aggressive trader.
Canadian Dollar is back after leaving the descending channel. Currently, we have “head & shoulders” reversal pattern forming with the target of 1.0172. The pattern is directed towards main descending trend, it says about a high chance of forming of the pattern. If the pair is fixed behind the neckline, we can try to sell the pair.6
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.