USDCAD - Head & Shoulders Break To Trigger Short Opportunity

Price has made a downward sloping Head & Shoulders pattern with a test of the neckline. A break below the neckline test will clear the way for shorts down to the Head & Shoulder Target 1 and Target 2 at the next key area of support highlighted in the chart. The formation of a downward sloping Head & Shoulders pattern however indicates the possibility of even further declines in the USDCAD past the targets as the downward sloping nature of the patterns neckline (in a downtrend) often proceeds volatile moves. A rally in Oil should also see the strength coming into the Canadian Dollar.