CADCHF | Perspective for the new week
The impact of Sellers in February 2020 ( Bearish Impulse leg that lasted a month on the weekly chart - https://www.tradingview.com/x/...) appears to be too strong for the Buyers to gain that confidence needed to invest in the CAD. With the present Head and Shoulder look alike, I shall be patiently looking out for a significant Breakdown of Neckline and Support level 0.69300 to hop in the decline.
Tendency: Downtrend ( Bearish )
Structure: Channel | H & S| Supply & Demand
Observation: i. Despite having a Bullish structure, the CAD$0.0.69800 level has been a very stronghold for Sellers since mid-October 2020.
ii. Bullish move from CAD$0.69400 ( Support level ) continue to be rejected CAD$0.69800 hence making it a major level for Supply.
iii. With the present character in the market, the Breakout of CAD$0.698000 on the 9th of Nov. 2020 appears to be false as the price continues to experience weak Bullish momentum springing from the Bullish Trendline.
iv. This been said, CAD$0.69300 level becomes a level to watch out for significant breakdown for confirmation this week.
v. It is also worthy to note here that a significant Breakout of CAD$0.70000 level this week might render this setup invalid and an immediate shift to a rally continuation shall be activated.
Trading plan: SELL confirmation with a minimum potential profit of 100 pips.
Risk/Reward: 1:3
Potential Duration: 1 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
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