Uh oh, it looks like the EURCAD is about to retrace some of its losses! As you can see from the chart I posted, three spinning tops have formed right 1.2500, a psychological support barrier. With stochastics at oversold conditions and the pair trading above the highs of the three spinning tops, this could mean that the pair is about to retrace toward the broken support-turned-resistance at 1.2650!
Is something on fire? Do I smell something burning? Oh wait, my bad, that’s just the Kiwi on a very bullish run. The pair, after bouncing from support at .6600, was bought up like an iPAD on opening day with very little hesitation! Is this a sign of more gains to come? Judging from how easily the bulls broke through the .6900 handle, it looks like we will see the pair retest the rising trend line resistance .7000 very soon.
Gaps, gaps, gaps… Last week, I pointed out, a descending triangle was forming on the daily chart of the CADJPY. However, with pair gapping above the falling trend line, could we see the pair continue to rise? If we see a candle close above the trend line, look for price to test resistance at 92.30. On the other hand, if we see the pair close below the resistance, we could see the pair continue its descent.