AUTOREFRESH 
Look to pairs like EUR/CAD for pointers
By Sean Lee || June 24, 2010 at 21:34 GMT
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When USD/CAD dipped to 1.0200 and just below there were bids aplenty from big players and Sovereign names. EUR/USD also didn’t feel particularly comfortable below 1.20 and has been working through it’s ‘oversold’ status for the past few weeks. All of this adds up to some serious short covering in EUR/CAD. Other pairs like GBP/CAD are also looking like they’ve had enough downside with a possible inverted H&S forming.
Big players do not like going on their extended summer break with large positions still in place and that’s another reason why we’re in this short-covering phase.
Sean, with regard to the 60-minute GBP/CAD chart, would you characterize the pricing action of the last 30 (or so) hours as a type of continuation pattern known as a “pennant”? If so (and operating under the theory that most pennants “fly at half mast”), then would you agree that 1.55052 appears to be a key GBP/CAD support level, from which some of us might want to launch some glorious GBP/CAD longs aimed at late February’s high of 1.63342?
I don’t see a pennant there yet Solange. I think we probably need to watch it for another 8 or 10 hours and see how it develops but it certainly does look like bullish consolidation btw 155/1566