USD/CAD Bullish SHS Pattern Needs Stronger Momentum For Uptrend Continuation

August 30, 2019

2 min read

Dear Traders,

The USD/CAD has formed an inverted head and shoulders pattern right at the W L3 so we should see a bounce.

How I teach traders to trade the bullish SHS is different from classical price action school. A profitable bounce might happen at the bottom of the right shoulder provided there is enough confluence for making a trade. At this point we can see that 1.3260-80 is indeed providing a confluence so we should see a bounce from that zone. Momentum is needed as the pair lack general volatility. 54 pips for the last 5 days is very slow. If the scenario is successful, we should see 1.3320, 1.3337 and 1.3380 as the final target.

The analysis has been done with the CAMMACD.MTF template.
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