This USDCAD short has made good progress over the last month, it has now formed a bearish right angle triangle after completing its head and shoulder pattern. Interestingly the bottom line of the RAT coincides with the measurement from the top of the H&S and a previously identified resistance zone (see attached image). A break lower here offers significant downside potential. The downward sloping trendily seems to be gathering strength after repeated tests. RSI has withdrawn from the oversold region, MACD is still negative and the ROC below zero, all of this confirms downside momentum. Although not shown ADX is increasing adding to the possibility of a sustained trend developing.
I am holding short and will look to increase trade size should the triangle pattern develop
I am holding short and will look to increase trade size should the triangle pattern develop
