CADCHF | PERSPECTIVE FOR THE NEW WEEKWeak economic data and pressures on the oil market are taking a toll on the CAD as it continues to find it difficult to raise the bar. The sharp fall after reaching a peak of 0.70000 appears to hold ground.
Tendency: Uptrend ( Bullish )
Structure: Trendline | Supply & Demand| Reversal Pattern (Head and Shoulder)
Observation: i. Even though we are generally on an uptrend, it appears that correction into the Daily trendline is the aim of price action at this juncture.
ii. Selling pressure continues to increase after the Breakdown of Neckline @ 0.69200 a couple of weeks ago.
iii. Canada's retail sales index at 0.6% as showcased on Friday's data was also below expectation which increases doubt in the strength of the currency.
iv. I am looking out for a Bearish signal in the following week(s) as the aim extends to hit Bullish Trendline on Day chart.
Trading plan: SELL confirmation with a minimum potential profit of 110 pips.
Risk/Reward: 1:2.5
Potential Duration: 2 to 6 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
