CADCHF testing major resistance, remain bearish for a drop

Published on: 2018-02-13 01:26 GMT

Sell below 0.7470. Stop loss at 0.7528. Take profit at 0.7376.

Reason for the trading strategy (technically):

Price is in a strong descending channel and approaching channel resistance once again. We look to sell below 0.7470 resistance (Fibonacci retracement, channel resistance, horizontal overlap resistance) for a further push down to 0.7376 support (Fibonacci extension).

Stochastic (34,5,3) is seeing major resistance below 96% where we expect a corresponding reaction from.