EURCAD - Inverse H&S

EURCAD - medium term bullish bias

The euro's downtrend came to a halt at the demand area of 1.4440. The failure to produce a lower low resulted in an inverse head and shoulders pattern, a bullish formation suggesting an extended reversal in the coming days. The break of the neckline at 1.4690 is a confirmation that buying interests have been building up. The classic target projection shows a rally towards 1.4920 which coincides with the August high.

Key support: 1.4460
Key resistance: 1.4920