Welcome to this analysis on CAD/CHF.
Last night we took a short trade on this pair that got stopped out. price came back to the resistance after breaking down from the descending triangle, got rejected from it but then it regained the resistance and squeezed up.
Considering the massive bullish divergence on the momentum indicators
and the powerful squeeze that happened from the bottom, it seems like the descending triangle has morphed into a falling wedge now which is a bullish pattern. The target of the pattern is around 0.7076 as long as it holds above the diagonal support of the pattern. There is a resistant zone right around the target area as well (the red box around 0.7058) which comes from the lows of the topping pattern back in June.
This trade idea has 3 rewards to risk ratio.
Good luck trading. :)
Last night we took a short trade on this pair that got stopped out. price came back to the resistance after breaking down from the descending triangle, got rejected from it but then it regained the resistance and squeezed up.
Considering the massive bullish divergence on the momentum indicators
and the powerful squeeze that happened from the bottom, it seems like the descending triangle has morphed into a falling wedge now which is a bullish pattern. The target of the pattern is around 0.7076 as long as it holds above the diagonal support of the pattern. There is a resistant zone right around the target area as well (the red box around 0.7058) which comes from the lows of the topping pattern back in June.
This trade idea has 3 rewards to risk ratio.
Good luck trading. :)
Trade closed: stop reached:
-1R
