EUR/CAD gapped over 1,500 points on yesterdays open due to Greek news released over the weekend of a referendum scheduled for July 5th, with many investors expecting bailout proposals to be rejected. EUR/CAD quickly recovered any losses and closed the day higher than previous three candles creating a text book pattern.
Prices overall rejected and bounced off key monthly/weekly support levels @ 1.35114 (which was the initial target of my previous analysis) and closed above the 61.8% Weekly Fib level (found @1.38700 area) indicating a breakout to the upside ahead.
NOTE: Although a very prominent pattern found, expect large swings (long tailed ) to occur over the course of the next couple of weeks.
1. Prominent (engulfs prior three candles)
2. Inverted pattern still intact (price retraced upon reaching shoulder)
3. Price closed above 61.8% Weekly Fib level
1. Price is currently ranging (between 1.40400 - 1.35600 area) and has failed to close above 50% Weekly Fib level
2. Price has failed to close above Weekly/Monthly (Resistance)
Target 1 - 1.41762
Target 2 - 1.44733
Stop Loss - 1.37300 area (Neckline of head and shoulder pattern)