EUR/CAD is in another inverted head and shoulder aka “kilroy” attempt. The daily chart shows the kilroy with shoulders around 1.34 and a neckline around 1.3765.
Note in the daily chart that the 1.3765 neckline is also a previous support pivot. This makes the potential break above 1.3765 even more significant. Well at this point, the resistance pivot has moved to 1.3805, which was marked by the first attempt to complete the inverted head and shoulder.
We can say that the EUR/CAD’s reversal pattern was complete, but there was no extension higher. Instead price retreated. However, the bearish attempt was also thwarted before price could even test the 1.34 shoulder. A break below 1.34 would have been a bearish continuation sign.
Last week, EUR/CAD climbed back towards this 1.3765-1.3805 resistance area, which is the area we have to monitor this week.
A break above 1.3805 would break the neckline, clear the 100-day SMA and ta falling trendline from 1.4490 high on the year. This should open up the 1.40 handle, between the 200-day simple moving average (SMA) and the falling trendline coming down from last December’s 1.4643 high.
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