Forex Review Online
No Result
View All Result
  • Home
  • Crypto
  • Education
  • News
start trading today
  • Home
  • Crypto
  • Education
  • News
No Result
View All Result
Forex Review Online
No Result
View All Result
Home ANALYSIS

Two terrifying head-and-shoulders patterns on the brink of breakdowns

A.R Chowdhury by A.R Chowdhury
August 20, 2021
Reading Time: 2 mins read
0

If these crack, it could get ugly

CAD/JPY

CADJPY

Through Q2, this was the best trade in the FX market but it’s not so pretty right now.

There’s a major head-and-shoulders on this chart and as I write this, it’s breaking through the neckline, which is also a double bottom.

This chart is almost too textbook but it’s not pretty. The measured target is about 80.00 and at the pace we’ve gone in the past 8 trading days, it won’t take long to get there.

Copper

copper

Just like in real life, the doctor is worried.

The health of the global economy depends on the health of every one of us. Given the number of breakthrough covid cases due to delta and scrambled announcement of booster shots in the US, the trends aren’t promising.

But you don’t need me to tell you that, doctor copper is flashing the same. A single chart like CAD/JPY can sometimes send a misleading signal but when another economic-bellwhether like copper does the same, it’s best to listen.

What it means?

Counter to the charts, I think we’re going to get past delta. Highly vaccinated places are seeing a reversal in cases and even in hard hit parts of the US, there’s a loss of momentum. Vaccine rollouts around the world are progressing rapidly and I suspect this will be the last big gasp of covid, even it it means we have to get booster shots for years.

That said, these charts are ugly and there’s no reason to fight them now. A washout could very well be what it takes to send the Fed back to neutral, coalesce Democrats around another stimulus bill and get China to ease.

I think the trade is to buy the drop eventually but it may get very ugly first.

Invest in yourself. See our forex education hub.

Source link

RELATED POSTS

EURGBP erases gains and returns to a familiar bias defining level

New highs for US stocks. The Nasdaq continues to lead

USDJPY has 3 key technical levels that have stalled the rally higher today

ShareTweetPin
A.R Chowdhury

A.R Chowdhury

Related Posts

EURGBP erases gains and returns to a familiar bias defining level
ANALYSIS

EURGBP erases gains and returns to a familiar bias defining level

August 14, 2022
New highs for US stocks. The Nasdaq continues to lead
ANALYSIS

New highs for US stocks. The Nasdaq continues to lead

August 14, 2022
USDJPY has 3 key technical levels that have stalled the rally higher today
ANALYSIS

USDJPY has 3 key technical levels that have stalled the rally higher today

August 14, 2022
WTI crude oil futures settle at $92.09
ANALYSIS

WTI crude oil futures settle at $92.09

August 14, 2022
Bitcoin technical analysis, bulls might be giving up soon
ANALYSIS

Bitcoin technical analysis, bulls might be giving up soon

August 14, 2022
The weekend forex technical report for the week of August 15, 2022
ANALYSIS

The weekend forex technical report for the week of August 15, 2022

August 14, 2022
Next Post

USDCHF tests 200 hour MA and finds some cause for pause against the MA level

US major indices open lower but see some rebound in early trading

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended Stories

Cable ignores the dollar narrative as buyers look to keep above 1.3000

July 31, 2020

EURJPY cracks below the 200 hour MA for the first time since July 30

August 10, 2020

EURUSD jumps. ECB crisis tool talk gives the pair a lift

April 8, 2022

Popular Stories

  • The USD is the strongest and the NZD is the weakest as the NA session begins

    0 shares
    Share 0 Tweet 0
  • New highs for US stocks. The Nasdaq continues to lead

    0 shares
    Share 0 Tweet 0
  • EURGBP erases gains and returns to a familiar bias defining level

    0 shares
    Share 0 Tweet 0
  • What is forex and How does it work?

    0 shares
    Share 0 Tweet 0
  • What is CFD trading?

    0 shares
    Share 0 Tweet 0
Forex Review Online

© 2022 My Forex Review - Designed with Jnews Theme.

Navigate Site

  • Home
  • Crypto
  • Education
  • News

Follow Us

No Result
View All Result
  • Home
  • Crypto
  • Education
  • News

© 2022 My Forex Review - Designed with Jnews Theme.