I really like this pair and CADCHF for the week ahead. Link to CADCHF trade posted below.
We have been in a very long downtrend with multiple swings for the EURCAD. We then hit a major support zone which can be seen by zooming quite a ways out on the daily chart. From here it seems we are reversing, with no signs of creating another lower high... but of course this is not confirmed. The lower high in the downtrend we are working with is the 1.4366 level, where the black line is.
From here, we might be making our first higher low in a new uptrend. To confirm this, we would want to see a slight pullback before breaking above 1.4366. Looking very good, but we will just await the break and close. Again, all a head and shoulders pattern shows us visually, is the transition from one trend to another with the lower high become a higher low in this case (vice versa for an uptrend).
We have been in a very long downtrend with multiple swings for the EURCAD. We then hit a major support zone which can be seen by zooming quite a ways out on the daily chart. From here it seems we are reversing, with no signs of creating another lower high... but of course this is not confirmed. The lower high in the downtrend we are working with is the 1.4366 level, where the black line is.
From here, we might be making our first higher low in a new uptrend. To confirm this, we would want to see a slight pullback before breaking above 1.4366. Looking very good, but we will just await the break and close. Again, all a head and shoulders pattern shows us visually, is the transition from one trend to another with the lower high become a higher low in this case (vice versa for an uptrend).
