bullish Shark and bullish AB=CD pattern completing...
CAD/CHF (strong/weak) analysis:
The Canadian loonie is due for a bullish retracement as this bullish Shark and AB=CD pattern are completing. Economically, the USD should be bullish this week from an anticipated interest rate hike as well as tax reform in the publics sight. With tax reform passing through congress and Roy Moore coming closer to securing a victory for the republican party, the anticipation of tax reform passing shortly is coming closer. This accompanied by the fact that Canada is the major exporter of oil to the United States and with raising oil prices are bullish for the CAD.
Not only this, but, with the interest rate decision by the Swiss Bank coming up (which they are highly anticipated to keep rates the same) and the recent correction from safe havens back to AUD, NZD, and USD is showing the CHF in a profit taking setting as investors are steadily pouring out of the CHF and putting money into higher yielding assets like the U.S. dollar, Australian dollar and New Zealand dollar. With all the recent corrections from CNBC and CNN of fake news, as well as pressure easing off the the headlines from the Mueller investigation should be bullish for the U.S. dollar and help the Canadian loonie gain some momentum. Canada has shown strong economic growth and has stayed out of the negative spotlight for quite some time showing strength and a safe place for investors to go long.
Along with this, from the technical analysis, you can see that bearish momentum has exhausted and we have the formation of multiple bullish candlestick and reversal patters at the PRZ of the harmonic patterns. With all this technical confluence and the lack of economic data coming out in the next 24 hours for the pair, this is a strong bet for a correction and my profit target is set at the 20-period moving average on the H4 timeframe.
The Canadian loonie is due for a bullish retracement as this bullish Shark and AB=CD pattern are completing. Economically, the USD should be bullish this week from an anticipated interest rate hike as well as tax reform in the publics sight. With tax reform passing through congress and Roy Moore coming closer to securing a victory for the republican party, the anticipation of tax reform passing shortly is coming closer. This accompanied by the fact that Canada is the major exporter of oil to the United States and with raising oil prices are bullish for the CAD.
Not only this, but, with the interest rate decision by the Swiss Bank coming up (which they are highly anticipated to keep rates the same) and the recent correction from safe havens back to AUD, NZD, and USD is showing the CHF in a profit taking setting as investors are steadily pouring out of the CHF and putting money into higher yielding assets like the U.S. dollar, Australian dollar and New Zealand dollar. With all the recent corrections from CNBC and CNN of fake news, as well as pressure easing off the the headlines from the Mueller investigation should be bullish for the U.S. dollar and help the Canadian loonie gain some momentum. Canada has shown strong economic growth and has stayed out of the negative spotlight for quite some time showing strength and a safe place for investors to go long.
Along with this, from the technical analysis, you can see that bearish momentum has exhausted and we have the formation of multiple bullish candlestick and reversal patters at the PRZ of the harmonic patterns. With all this technical confluence and the lack of economic data coming out in the next 24 hours for the pair, this is a strong bet for a correction and my profit target is set at the 20-period moving average on the H4 timeframe.
Comment:
Profit target hit at the 23.6% retracement of the final leg of the harmonic pattern before price performed another bearish reversal. You can see the 23.6% retracement marked with the the second red dotted horizontal line from the bottom.