I don't like that pattern but I cannot ignore it either. On Daily we might be forming a Head and Shoulders pattern but the Right shoulder is definitely not ready yet, so, most likely price will consolidate there a bit longer. In general, this pattern is extremely tricky to trade and the possibility that it fails in the end is fairly high. Hence, I would use extreme caution using it as a valid trading signal.
Comments
seanstu
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The right shoulder has now formed. A break of the neckline along with the current sentiment around the USD seems to make a nice setup.
capitalpropertiesfx
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Yes and no. USDX is a bit over extended and a healthy pullback might be around the corner.
Of course it is very difficult to say, when this correction might begin but in the end, USDCAD may push higher solely due to Cad weakness not USD strength.
Whatever the case will be - USDCAD is the pair to watch at the moment.