Exciting potential awaits on the CADCHF pair! Currently, we've spotted a bearish flag pattern forming on the 4h timeframe. A break from this formation will serve as a strong confirmation of continuing bearish momentum.
Another key element to watch out for is the inside bar. A shift past its limit into a new low will underline the dominant bearish pressure in this scenario.
Importantly, this analysis is also supported by the overall market direction which is decisively bearish.
Furthermore, recent news has played a role in shaping this setup. The US Dollar has shown a slight weakening trend following a mixed July jobs report, and the Canadian employment change for July registered a decrease of 6.4K jobs. This gives additional context to our bearish outlook for CADCHF.
As always, let's stay observant, manage risk wisely, and capitalize on these developments!
I like this analysis, thanks for sharing. If price pulls back towards the top of the equidistant channel, that would be an awesome entry location for a short continuation.