Hi Traders! CADCHF technical analysis and forecast post is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! here). Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
CADCHF D1(Daily) Chart Analysis – Bullish Channel, Stochastic Oscillator
On the daily chart, we have a bullish channel that has formed which started on 30th July 2020. This channel is formed by the highs and lows reaching parallel support and resistance zones. Currently, the price which is moving higher is nearing the top of this channel. Until the top of this channel holds my view remains bearish here. Also based on the Stochastic Oscillator, we could see that the price has reached its extreme which we may consider as evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
CADCHF H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Divergence, Stochastic Oscillator
On the H4 chart, we have a key resistance zone that has formed based on the 61.8%(0.70860) Fibonacci expansion level of the big wave, and the 100%(0.70817) and 161.8%(0.71205) Fibonacci expansion levels of the small wave we have. The price which is moving higher has currently reached this zone. We also have a bearish divergence that has formed between the first high that has formed on 2nd February 2021 and the second high that has formed on 17th February 2021 based on the MACD indicator which we may consider as evidence of bearish pressure. Also based on the Stochastic Oscillator we could see that the price has reached its extreme here as well which we may consider as evidence of bearish pressure. We also have a good uptrend line that has formed, if we get a valid breakout below this dynamic support we may consider it as a validation for the bearish view and we may then expect the price to continue lower further.
Technical Analysis & Forecast Summary
CADCHF D1(Daily) Chart Analysis
- Bullish Channel, Stochastic Oscillator
CADCHF H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Divergence, Stochastic Oscillator
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
