This pair shows an immense weakness. Reinforced with the monthly view, we may say that another huge downward move is imminent. The pitchfork constructed by the P0, P1 and P2 (the pitchfork itself isn't shown in the chart to prevent overcrowd) has the red line as its trigger line. The red arrow points out the upsloping failure, i.e., it is where the market turned bearish whereas it had some room in the North. Thus, the Hagopian rule says that we should go short as soon as the price goes below the red line. It seems, on the other hand, that there will be a shorting opportunity before that, when the price hits a confluence zone and shows weakness. The downward continuation could also be confirmed by a bearish crossover in the Stoch.
Comment:
As expected, the bearish crossover signaled the short entry. Now is the time to move S/L to B/E.
Comment:
Stopped at B/E. It seems there might be another shorting opportunity if the pair shows weakness at a confluence level. However, within my new organization of the pairs-to-be-watched list, I will not follow CADCHF. So I'm leaving now any opportunity here with this pair. I wish happy trades to all!
