Today, three great setups with the weaker USD. First one is the USDCAD which yesterday tested the neckline of the large Head and Shoulders pattern. The test was positive for sellers and the price bounced from that resistance. That confirms the mid-term sell signal on this instrument.
The next occasion is on the cable, which came back above the neckline and broke the upper line of the bullish wedge. It all started with the bounce on the long-term up trendline. The sentiment is definitely positive as all price action factors are in favor of the demand.
The last occasion is on the NZDUSD, which broke the mid-term down trendline and later defended this as a support. The price makes higher lows and highs, which confirms the bullish approach. The potential target for this rise is around 100 pips higher from the current price.
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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