CADCHF CLIMB TOAWRDS 61.8% FIB RETRACEMENT LEVELThe CaddieFranc is still recovering from a sharp nosedive on New Year's 2015 already retracing to the 61.8% level and falling back down toward around 40% fib levels. The pair is expected to continue to regain strength and climb back up to the 61.8% level and ultimately onto the 80-90% level, where it once was before the dive. Expect a slow consolidated/upward climb in the next few months.
Cadchflong
CAD/CHF long setupTechnical Analysis: Bias Bullish
- Price has broken above 100-DMA, eyes 200-DMA
- Momentum studies highly bullish
- RSI shows strength at 67 levels with room to run further
- +ve DMI dominance, ADX above 25 and rising in support of trend
- On weekly charts, MACD is on verge of bullish crossover and Stochs have rolled over from oversold levels
Support levels - 0.7560 (100-DMA), 0.7487 (38.2% Fib), 0.7461 (55-EMA)
Resistance levels - 0.7642 (200-DMA), 0.7650 (61.8% Fib), 0.7726 (Aug 22 high)
Good to go long on dips around 0.7575/85, SL: 0.7530, TP: 0.76/ 0.7640/ 0.77
CADCHF approaching first resistance, potential drop! CADCHF is approaching our first resistance at 0.7562 (horizontal overlap resistance, 50% Fibonacci retracement, 100% Fibonacci extension). A strong reaction might occur at this level, pushing price down to our major support at 0.7429 (horizontal overlap support, 61.8% Fibonacci extension, 38.2% Fibonacci retracement).
Stochastic (89,5,3) is also seeing a bearish divergence and is reacting off its major resistance where we might see a corresponding drop in price.
Losses can exceed the initial investment so please ensure you fully understand the risks Trading CFDs on margin carries high risk.
CADCHF testing major resistance, potential breakout!CADCHF is testing major resistance at 0.7412 (Fibonacci retracement, horizontal swing high resistance) and it's starting to break out of our triangle formation. Our next major resistance is at 0.7434 which is a fibonacci extension, retracement and swing high resistance level.
If price does drop, we're seeing it potentially going all teh way down to 0.7366 before 0.7336.
Stochastic (34,5,3) is also seeing major resistance at 89-95% where a corresponding reaction could occur.
CADCHF remain bullish after channel exit
Intro: CADCHF has made a bullish exit from its long term channel, we maintain our bullish bias unless it reintegrates.
Buy above 0.7400. Stop loss at 0.7360. Take profit at 0.7493.
Reason for the trading strategy (technically):
Price has made a bullish exit of our long term descending channel signalling that we’re likely to see a change in momentum from bearish to bullish. The important change we’re seeing today is that intermediate ascending support on RSI is starting to provide the bounce required for price to rise further. We look to buy above 0.7400 support (Fibonacci retracement, horizontal overlap support) for a push up to at least 0.7493 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) has also made a bullish exit of its long term descending resistance-turned-support line signalling a corresponding change in momentum too. Intermediate ascending support line shows we might be seeing a bounce soon.
CADCHF bullish channel exit, time to buyIntro: CADCHF has made an exit of its channel signalling a change in momentum, and also providing a great opportunity to buy.
Buy above 0.7400. Stop loss at 0.7360. Take profit at 0.7493.
Reason for the trading strategy (technically):
Price has made a bullish exit of our long term descending channel signalling that we’re likely to see a change in momentum from bearish to bullish. We look to buy above 0.7400 support (Fibonacci retracement, horizontal overlap support) for a push up to at least 0.7493 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) has also made a bullish exit of its long term descending resistance-turned-support line signalling a corresponding change in momentum too.