Hey all, it's been a quiet couple of days as I've been closing some great trades after having already met my monthly goal. Despite that, I think it's always important to monitor the market for future ideas that may develop when we're ready to trade. CADCHF
is showing some signs of being a potentially "safer" medium term idea that should come into play within the next week or two. What we have here is a clear overall descending channel
on the daily, but if you look a little closer you'll see that the price is making an upward move in an ascending sub-channel of its own. If you'll look back a few weeks, there was a very similar scenario where we saw the price break out of its own channel for a very lucrative descent (on the 17th of April to be exact). The price itself seems to have it its ascending channel
wall so we can expect the price to continue moving up to hit any of the outlined S&R levels before making its big break down to Target 1 which is an important Fib level. If everything goes according to plan, we can expect some consolidation and a brief reversal to give way to a further break down to Target 2 which is both a very strong daily S&R level AND a vital Fib level (from the overall structure). The Risk/Reward diagram is merely for illustrative purposes and can be moved depending on the location of the breakout (which might result in a few more pips).
TP: 0.71494 and 0.70753
This is merely an idea so always take the necessary precautions when trading!