Completed Head&Shoulder Price pattern
Lastweek, USDCAD decided to test week 34 resistance (which was also mentioned in the previous posting – Should price decide to try and test week 34 high (blue line) again but failed to close above, then we could look forward to go short, with a reversal pattern in a lower timeframe see previous article here .) Indeed USDCAD fell close to 300 pips! Although it didn’t move 400 pips but earning close to 300 pips is already satisfying.
So for week 36, can we look forward to a continuation of the downfall or is it going to be another scenario of testing week 34 and now week 35 high?
- We should always be a trend follower and not otherwise, unless we see a reversal pattern. Since Loonie seems to show us that it is on a downward movement, we could look forward to short should price get resisted at potential immediate resistance zone.
- If we want to go long, we should wait for price to get supported at strong support zone before we could go long. A potential support zone could be at 1.0245 (red line) which is also week 30/32 & 33 low. Always remember to buy low sell high.
Tflow® students can look forward to another 300 pips movement! We could already see a Tflow® pattern forming but wait for a confirmation and a trigger before you jump in a trade!
To find out more, you can join our free forex seminar where we are going to showcase Tflow®.
