CADCHF with a clean sell signal

CADCHF with a clean sell signal
On February 20 I published an analysis of a rather exotic currency pair: the CADCHF, who had a very promising trading setup on the chart. Back then, I was rather bearish, eyeing the further drop in line with the main trend. This is how I concluded the previous piece about the CADCHF:
“Before the triangle pattern formed, the CADCHF established a new long-term low at 0.678 (marked in green). It is very possible that the breakout from the triangle will be to the downside, and that the price will test the green area again. This is my base scenario for this instrument.”

The price did go lower in the end, but it didn’t happen straight away. First, we saw another rise after the CADCHF bounced off the lower line of the triangle. Trading inside of this formation continued and on March 3, the price ultimately bounced off the upper line of the triangle and dropped significantly. On Monday, thanks to higher inflation in Australia, the price dropped and broke the lower line of the triangle, triggering a sell signal. Yesterday, the CADCHF tested the lower line of the triangle as a resistance and the test was positive for the sellers, as we saw a bounce and a move south.

After the breakout of the 0.683 support (green), the CADCHF is in a full bearish mode with the aim locked on the blue support. Chances that we will get there are really high.
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.