Sell USDCAD Head & Shoulder Pattern

USD/CAD H1 Chart - Potential Short Entry Based on Head and Shoulders Pattern

The USD/CAD H1 chart might be presenting a shorting opportunity based on a possible Head and Shoulders pattern.

Pattern: Head and Shoulders (Bearish Reversal)

Description:

This pattern consists of three peaks: a left shoulder, a higher middle peak (head), and a right shoulder that is lower than the head.

A neckline is drawn connecting the swing lows before the left shoulder and the right shoulder.

If the price dips below the neckline (support level), it could signal a potential sell entry.

Profit Targets: Potential profit targets can be based on the height of the head (measured from the head to the neckline) projected downwards from the breakdown point. Technical indicators can also be used for profit targets.

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Comment:

Stronger Oil Prices: Oil is a major Canadian export. If oil prices continue to rise due to ongoing geopolitical tensions or supply disruptions, it could strengthen the CAD as demand for Canadian oil increases.

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