Three Great Bearish Setups. USDCAD, USDCHF and NZDJPY

This week should be important for the CAD. We do have an interest rate decision, statement, the CPI, and the Retail Sales data. Ahead of those events, CAD is very strong. USDCAD is going down for the past few weeks and it looks like this movement will continue. Currently, the price is creating the rectangle pattern, which promotes a breakout of its lower line and a further drop.

JPY is gaining strength across the globe (maybe apart from the GBPJPY). On NZDJPY we do have an interesting bearish setup. A rare combination of head and shoulders, false breakout and breakout of the up trendline. The one thing missing for a full, legitimate sell signal is the breakout of the 78.5 support.

USDCHF is very close to a major sell signal. All they need to do is to break the lower line of the long-term wedge and the neckline of the head and shoulders formation. Only this will be a significant reason to go short.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire

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