USDMXN ready to take profits, EURJPY to go lower and USDCAD to break from the sideways trend

Three technical setups on Tuesday:

• USDMXN – We can see first signs of the exhaustion here. After breaking the upper line of the triangle, the price surged higher. Now we are approaching the 38,2% Fibonacci where we can get a taking profit action form the buyers. That resistance is additionally strengthened by the highs from March, April, and May.

• EURJPY is very close to triggering a major sell signal after the price broke the up trendline and increased the pressure on the 131.85 support. A breakout here should increase the odds for a further drop.

• USDCAD is ignoring a great sell opportunity caused by the head and shoulders pattern and is heading higher to test the down trendline and the upper line of the recent sideways trend. Patience wins the day here and we should wait for the breakout before opening any position.

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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