CADCHF, 4hr tf, Head and Shoulders pattern to materialize
Hello my friends,
This setup might a little bit contradict my GBPCAD call as for GBPCAD to be favorable, we want to see CAD stonger than GBP.
But on the same time, CADCHF also making a potential shoulders head pattern and price already broken through the necklne or trenline.
That trendline or neckline was previously a support and also an area of confluences.
With price breaking below it wind a soid canle close on daily and 4hr tf, we could say sellers are really pushing it down hard.
Notice also the Friday candle of CADCHF looks like a bearish pinbar.
If this is really a head and shoulders pattern, then the measured objective is around 155 pips.
There is some key support on the way down so we will only try to aim arond 100 pips of the measured objective.
Sell CADCHF 0.6975
Stop loss 0.7000
Take profit 0.6875 (4R)
RR Ratio 1 : 4
Use only 1-2% risk
Good luck
Disclaimer : i hold cadchf sell position from 0.6975
This setup might a little bit contradict my GBPCAD call as for GBPCAD to be favorable, we want to see CAD stonger than GBP.
But on the same time, CADCHF also making a potential shoulders head pattern and price already broken through the necklne or trenline.
That trendline or neckline was previously a support and also an area of confluences.
With price breaking below it wind a soid canle close on daily and 4hr tf, we could say sellers are really pushing it down hard.
Notice also the Friday candle of CADCHF looks like a bearish pinbar.
If this is really a head and shoulders pattern, then the measured objective is around 155 pips.
There is some key support on the way down so we will only try to aim arond 100 pips of the measured objective.
Sell CADCHF 0.6975
Stop loss 0.7000
Take profit 0.6875 (4R)
RR Ratio 1 : 4
Use only 1-2% risk
Good luck
Disclaimer : i hold cadchf sell position from 0.6975