CADCHF - Trend Continuation & Zone Break Retest, Mar. 23rd, 2021

CADCHF short setups, trend recently reversed to bearish. We can expect trend continuation on the current 4h and 1h setups, if this doesn't workout then we can look for a pullback to the broken zone that helped to set the new bearish trend. Both of the short setups drawn are not exactly what I would look for, just a toss up for the ideas, would need to adjust the stops and entries on both, the profit target will likely be at the nearest zone. If I do enter the trade I will post an updated comment with the entry price, profit level, and stop level.

Comment:

The zone retest setup is going to be a lot safer, there was no bearish momentum gained on the 15min timeframe so it would be hard for me to find a proper setup before I head to bed. Will just skip this setup altogether and look for a touch on the zone tomorrow, if it continues down throughout the night then it'll just be a missed trade.

Comment:

Neither setup ended up working out: For the trend continuation setup we failed to see immediate bearish momentum on smaller frames, this developed into support for the bulls and went up as the London session started. For the broken zone retest setup we failed to see price react on the zone in a bearish manner, instead we saw bullish momentum on the 15min leading up to the zone, followed by a strong bullish candle that broke the zone. Neither setup created any form of confirmation for shorts. We did see a bearish reaction on zone 0.74457 (top) - 0.74442 (bottom), but at this point I would have considered this an unsafe area to try to determine which direction price will head in.