EURCAD long taken at market open
This mornings close completed a head and shoulders pattern and broke out of the Kumo cloud. Point and figure 1 box reversal showing catapult buy signal. RSI is trending up but not oversold and MACD has just had positive crossover. Fundamentals here look good, Euro data is very strong at the moment repeatedly beating forecast even inflation is on the up. CAD is closely correlated to the USD which appears to be on a bit of a down trend at the moment and that should drag on the CAD despite the improving situation for oil. Target is measured from the neckline to the top of the Head in the pattern giving a healthy risk reward picture.
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