CADCHF: Ready to reverse?

FX:CADCHF   Canadian Dollar/Swiss Franc

If we have a look at the daily timeframe chart of CADCHF we can see that resistance level 0.76176 has been rejected twice forming potentially a double top reversal. However, this downward price move is supported against by a strong trendline as shown above. With Tenkan Sen and Kijun Sen showing very little directional momentum and we are likely to see some consolidation, perhaps a move back toward 0.76176 to retest resistance and complete the triangle pattern formation before we see any strong directional move.

If we drop down to the 4-hour timeframe we can see that price has currently found support at Kumo. However, price has just broken through Tenkan Sen and Kijun Sen as a support – but with Tenkan Sen, Kijun Sen and Senkou Span B is relatively close proximity to one another supported by Chikou Span firmly within price we can say that this area is crucial consolidation zone. Any downward move has to be supported by the daily trendline which is also supported by the 4-hour Senkou Span A. A candle close below this level i.e. a 4-hour Kumo breakout would likely invalidate the retest of resistance 0.76176 and a short position would be favoured. The one-hour chart shows supporting results with added downward momentum.