CADCHF remain bearish but watch for potential channel break
Sell below 0.7404. Stop loss at 0.7446. Take profit at 0.7318.
Reason for the trading strategy (technically):
Price is now testing major resistance at 0.7404 (channel resistance, horizontal overlap resistance, Fibonacci retracement) but we’re also seeing that it might be breaking out of our long term descending channel so we have to be careful and monitor price movement. If price starts reacting off our selling area and reintegrates nicely into the channel, then we can expect a further push down towards 0.7318 support (Fibonacci extension).
RSI (89) sees a long term descending resistance line hold the bearish momentum in price really well. However we can also see that there is a chance that it is starting to break out so we have to exercise caution and monitor it closely.
Reason for the trading strategy (technically):
Price is now testing major resistance at 0.7404 (channel resistance, horizontal overlap resistance, Fibonacci retracement) but we’re also seeing that it might be breaking out of our long term descending channel so we have to be careful and monitor price movement. If price starts reacting off our selling area and reintegrates nicely into the channel, then we can expect a further push down towards 0.7318 support (Fibonacci extension).
RSI (89) sees a long term descending resistance line hold the bearish momentum in price really well. However we can also see that there is a chance that it is starting to break out so we have to exercise caution and monitor it closely.