Megaphone Pattern at EUR\CAD

Megaphone Chart Pattern FOREX

A Bearish Megaphone chart pattern has appeared at the EUR\CAD in 4-hour and 1-hour charts. The Megaphone, or Broadening Wedge, is a powerful reversal pattern that consists of two expanding trend lines. It is expected that after 5 touches of the trend lines the pattern is broken. Before the breakout, price usually attempts to continue in the bullish direction, completing only partial uptrend before breaking downwards. In this pattern price has begun the partial retracement and is now expected to break downwards.

Size of pattern is 150 pips.