Head and shoulders pattern forming?

The closely-watched head-and-shoulders pattern in AUD/USD has continued to flatline but here's a new spot to watch.

CAD/JPY has been a great trade this year but it's beginning to look tired. It made a new high in late-March but there's been now follow-through.

Ultimately, this could be a speedbump in the reopening trade but it could also turn into a head-and-shoulders top, which would target a deeper retracement to 84.00.

Normally I would brush this one off but the uncertainty on a bunch of different charts, including oil and bonds, is somewhere to watch. Stocks are breaking out but the confirmation isn't there.

I struggle to see what would derail this short of some disastrous covid news or Powell talking taper but the charts are flagging risks.

Invest in yourself. See our forex education hub.



Source link

×