CAD/CHF SHORT

28 thg 6, 2020

Ascending channel of the back of a very strong bearish downtrend that held a lot of momentum. I am looking for opportunities to sell this pair in the coming days of next trading week. As we can see from the chart - the ascending channel has been generating some decent upside momentum with higher highs and higher lows, as the buyers stepped back into the market to reverse market sentiment. The key indication that price may be heading back to the downside is the latter end of the channel, where we can see that the buyers lost some momentum and failed to create a new higher high from the low and price was rejected at the 0.618 Fibonacci level . This shows some bullish exhaustion with a final break of the support line of the ascending channel which is a sign that the sellers are active in this market. I will be looking for a further strong bearish candle, a retest of the 0.786 fib level at support / resistance line and continuation to the downside. A swing or day trade may be optimal for this pair in the coming days / weeks.