CADCHF Reversed Off Its Resistance, Prepare For Further Drop
Sell below 0.7695. Stop loss at 0.7713. Take profit at 0.7648.
Reason for the trading strategy (technically):
CADCHF is tested its resistance area at 0.7695 (76.4% Fibonacci retracement, multiple swing high resistance) where it reacted and reversed. We are expecting a further drop down to its support at 0.7648 (50% Fibonacci retracement, horizontal overlap support). We do however need to be cautious of the intermediate support at 0.7670 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) is testing its resistance where we are expecting a corresponding drop. We have also identified a bearish divergence with price which contributes to our bearish bias.
Reason for the trading strategy (technically):
CADCHF is tested its resistance area at 0.7695 (76.4% Fibonacci retracement, multiple swing high resistance) where it reacted and reversed. We are expecting a further drop down to its support at 0.7648 (50% Fibonacci retracement, horizontal overlap support). We do however need to be cautious of the intermediate support at 0.7670 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) is testing its resistance where we are expecting a corresponding drop. We have also identified a bearish divergence with price which contributes to our bearish bias.