EURCAD: Re-test over?

Having a look at the EURCAD pair, we see the pair inclining again after approaching the key support level, which represents the neckline of the inverse head and shoulders pattern.

Areas of 1.3775 become the protection of the classical setup for short-term traders, while 1.4165 boundaries become the clue for resuming the reversal.

EURCAD-06-2015-FXCOMMENT

We classify the bounce from 1.4165 as a re-test process and thereby, we prefer buying the pair once again, reinforced by stability above Ribbons lines and positivity on RSI14.

Only coming beneath the afore-mentioned support will give us a rational reason for concern and will signal that, the peak of the setup is in place at 1.4165.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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