EURCAD doing well, clue at 1.3775

Having a look at the EURCAD pair over daily studies, we will discover that, prices have jumped after re-testing the initial support areas of 1.3430.

This bounce increases the probability of forming the right shoulder of inverse head and shoulders pattern.

EURCAD-29-05-2015-FXCOMMENT

The RSI14 also has found support at the value of 50.00 where it inched higher once again signaling some kind of bullish momentum.

Coming above Ribbons lines (EMA21-55) once again is classified as a sign of strength for short-term traders.

The key level for this classical setup resides at 1.3775 and a break of which will affirm tracing the head and shoulders pattern.

Only coming beneath the right shoulder areas will damage the classical probability.

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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