usd/cad forming Head & Shoulders (10th August,2022)

attached is the chart of usd/cad daily.

Rationale:

after hitting the high above 1.32000 in mid july , usd/cad has formed the Head & Shoulders Top pattern, which is the highly bearish pattern & expecting the us/cad to go down after breaking the neckline of the pattern.

volume also has been rising on right shoulder which is a confirmation of the pair to go down.

BOC, Bank Of Canda, is looking to increase interest rates aggressively which will cause the pair to go down as cad will become strong.

Plan:

Sell the pair 1.28800-1.29200 for the targets of 1.26000-1.25000

Thank You,

Sanjay Galani, CMT, CFTe