Daily analytical report (22/08/18)

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Alpari Market Review
Alpari Market Review

EURUSD used the inverse head and shoulders formation to climb back above the major horizontal resistance, which is the neckline of a much bigger and more relevant H&S pattern. That can be a potentially huge buy signal, but first we need to see the bounce from this line, which would be confirmation of the false breakout pattern.

NZDUSD has reached an important resistance created by the correction equality pattern and the horizontal line at 0.672. The first contact brings us a bearish bounce, which may be showing us a return to the main downwards trend.

Lastly is AUDCAD, where the price tested the major long-term horizontal resistance. It seems that supply is back on the market because the price is declining sharply. Sentiment should remain negative, as long as the price stays below the grey area.

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