Will CADCHF Resume It's Downtrend By Breaking The Wedge ?
This is the forex quote for the Canadian Dollar against the Swiss Franc. In this quote, the value of one CAD (the 'base currency') is quoted in terms of CHF (the 'counter currency'). The Canadian Dollar is often considered to be a 'commodity currency' because Canada exports a large amount of natural resources, notably oil. In practical terms, this makes it sensitive to the ebb and flow of trends in investors' overall outlook on global economic growth. Meanwhile, Switzerland's has a long-standing history as a safe haven and harbor for foreigners looking to house their wealth in a private banking system. As a pairing embodying the relationship between a growth-linked, higher yielding currency and a safety-geared, low yielding one, CAD/CHF is a notable carry trade vehicle.
SOURCE OF ABOVE: dailyfx.com/cad-chf
The CADCHF is forming an ascending wedge on the daily TF as evident on the main chart. For this formation to be broken the daily candle must break and close below the wedge. To add to this the price must also break the EMA 50 in the process and close below it. Once this is completed the price will potentially look to target the ascending trend line below the wedge (see the main chart)
Furthermore, looking at the weekly chart for this pair the price has been ranging for quite some time now and is potentially looking to test the lower part of the rectangle (range). As said before the CAD pair is highly affected by OIL prices since its a commodity currency and on the other the CHF is a safe haven pair. All in all its a high probability trade and i will wait for the criteria to be met before i decide to execute on this pair.
I will keep you updated on any signals should the criteria meet. Keep in my there are other CAD PAIRS forming some possible trade scenarios and i would like to remind you traders i do not risk trading the same currency even if its different pair. i will see what currency pair would give me the best RISK TO REWARD and the least path of resistance or support before i execute.
FOLLOW ME IF YOU LIKE THE ANALYSIS. stay tuned for any signals cheers
SOURCE OF ABOVE: dailyfx.com/cad-chf
The CADCHF is forming an ascending wedge on the daily TF as evident on the main chart. For this formation to be broken the daily candle must break and close below the wedge. To add to this the price must also break the EMA 50 in the process and close below it. Once this is completed the price will potentially look to target the ascending trend line below the wedge (see the main chart)
Furthermore, looking at the weekly chart for this pair the price has been ranging for quite some time now and is potentially looking to test the lower part of the rectangle (range). As said before the CAD pair is highly affected by OIL prices since its a commodity currency and on the other the CHF is a safe haven pair. All in all its a high probability trade and i will wait for the criteria to be met before i decide to execute on this pair.
I will keep you updated on any signals should the criteria meet. Keep in my there are other CAD PAIRS forming some possible trade scenarios and i would like to remind you traders i do not risk trading the same currency even if its different pair. i will see what currency pair would give me the best RISK TO REWARD and the least path of resistance or support before i execute.
FOLLOW ME IF YOU LIKE THE ANALYSIS. stay tuned for any signals cheers
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