Here is the Top-Down Analysis of CADCHF (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Market tested monthly support and started an upward move after rejection.
W > Price went up and dropped from resistance to complete W formation.
D > Price was moving in a , as projected price climbed high and after a /dragonfly sharply dropped down breaking channel support. Price was in consolidation in range of about 70-80 pips. Price broke last week and continued its move up till -0.272 Fib level on last impulse. Price dropped below same and is now at same level. We expect price to continue with its move.
As per CAD saw addition of major Long and closure of Short positions with Short positions further reducing to least for current year, improving net positions (still in -ve). CXY further gained strength during the said week but weakened a bit last week. CHF saw closure of few Long and addition of Short positions, reducing net positions whereas N-R saw addition of both Long and Short positions increasing cumulative net positions. SXY further improved its position during the said week. However SXY weakened last week.
4H> Price has surpassed daily and is now returning back to retest it as support. We expect it to continue with two targets.
1. it created at -0.272 Fob level (0.6966)
2. Next -0.272 Fib level on impulse, this level also coincides with last high of 08 Sept (0.6998)
Pair Correlation > CADCHF has positive correlation with GBPCHF and negative correlation with EURCAD .
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