We'll start Wednesday with a piece about CADCHF, and although this is not a major pair, it has a really interesting trading setup. In trading, you should always look for good opportunities on various instruments. Sticking only to one pair will surely cause more harm than good. Sometimes you will force yourself to trade even when there's no proper setup, which can lead to serious losses. To avoid that, look for the best setups elsewhere. And this is the part where I introduce you to CADCHF. We actually did this previously on the 19th of November, and on that day we were bearish:
"This is really interesting especially considering the price is breaking the lower line of the smaller triangle as we speak, which may be a proper signal to go short.”
Since then, the price has declined nicely. The movement is very technical. After an initial drop, we had a bullish correction, which stopped on the first important horizontal resistance (green). The bounce from this level was really sweet. The price created two pin bars (yellow, long heads), which indicated a rejection of those higher prices. After this, the price went down. Wednesday has brought us new weekly lows and the chances of this movement being extended are very high.
The potential target is on the lower line of the giant symmetrical triangle pattern, so the risk-to-reward ratio is still awesome. In this case, we are talking about the 130 pips in profit, which for CADCHF is a lot!