In the daily chart, Euro rate is staying next to the broken neckline of the head and shoulders pattern and somewhat resembles a pennant formation. In principle, we can potentially wait for the rate to drop even from the current level as there are some possible prerequisites for that. The rate might drop up to the level 1.1200, which is the height of the pattern:


The rate of the Canadian Dollar has closely approached the 50% Fibonacci 1.2925 level, which has expanded along the last descending move. The USD/CAD may drop up to the level 1.2500 forming a candlestick pattern:


The rate is slowly approaching the level 152.83 from which it can probably pull back down:

Stay tuned for more and trade with Tickmill!

Share this post: