#USDCAD: Potential 4hr H&S: Support at 1.3440
Head & Shoulders seem to be building on USD CAD with the left and right shoulder at 1.3650 and the head at 1.3800. The neckline is at the 38.2 fib i.e. 1.3575 and the target is distance between the neckline and bottom which is also a confluence with the 61.8 fib at 1.3440
I am not in this trade but any retrace to 1.3600 will be an opportunity for me to enter a short trade. A close above 1.318 i.e 38.2 fib of 1.37911/1.35102 invalidates this theory.
NB with any trade involving CAD keep an eye on crude, bullish crude will help this play out, but we are hitting a weak resistance on crude
I am not in this trade but any retrace to 1.3600 will be an opportunity for me to enter a short trade. A close above 1.318 i.e 38.2 fib of 1.37911/1.35102 invalidates this theory.
NB with any trade involving CAD keep an eye on crude, bullish crude will help this play out, but we are hitting a weak resistance on crude
Comment:
USDCAD played out as expected i.e detailed in the chart above. I was short from 1.3530 which was around the neckline and closed it at 1.3430.