Hi Traders! CADCHF short term forecast and technical analysis 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!. Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
CADCHF D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, Parabolic Sar
On the daily chart, the price which was moving lower has reached a key support zone formed by the 161.8%(0.72091) Fibonacci expansion level of the first wave and the 61.8%(0.73077) Fibonacci expansion level of the second wave. The price respected this key support zone and is bouncing higher from it. Also, we have a bullish divergence that has formed between the first low that has formed at 0.73570 and the second low that has formed at 0.72903 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. Also, currently there are no signs opposing this short term bullish view. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
CADCHF H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Two Strong Support Zones
Looking at the H4 chart, we could see that the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below(marked in blue) holds my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
CADCHF D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, Parabolic Sar
CADCHF H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Two Strong Support Zones
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 short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
Traders Academy Club Team
