Created
: 2024.11.05
2024.11.05 22:25
EUR/CAD has two possible polar-opposite scenarios in which price could play out:
1) The pair is going higher - it has broken out from a consolidation pattern formed since August and is about to rally as it fulfills the price target for the pattern.
2) The breakout above the upper trendline of the pattern is "false" and the pair has formed a small Double Top bearish reversal pattern (DT) instead. This will likely see prices fall if price breaks below the pattern's lows.
A break above the 1.5172 (November 1 high) would probably confirm scenario 1) and lead to a continuation higher, to an initial target at 1.5228, the August 5 high, followed by 1.5312, the 61.8% Fibonacci price projection of the height of the pattern.
A break below 1.5110 (November 1 low), on the other hand, would probably confirm the DT and lead to a move down to 1.5051 which is equal to the height of the pattern extrapolated lower.
Volume was lower on the right hand shoulder of the DT compared to the left (red dotted line on chart) which helps confirm the pattern as authentic and adds bearish color.
Created
: 2024.11.05
Last updated
: 2024.11.05
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy