CADCHF – BUY – 5th February (Closed)
Good afternoon Forex Kings,
We are turning our attention to the CAD as oil prices have taken a battering due to the decreased demand coming from China. The CAD tends to follow the price of oil.
China has quarantined millions of people due to the corona virus. This has resulted in a huge reduction in manufacturing and people going to work. As Chinas manufacturing drops, so does their demand for oil.
However, OPEC is currently meeting to discuss cutting supply chains in an attempt to increase the price of oil. This suggests once oil begins to recover the CAD will strengthen along with the precious liquid.
Technical analysis
CADCHF
Technically the CADCHF has created a double bottom on the daily candles. We will now be looking to buy the pair for a long run higher.
CADCHF – 4 Hour
Trade Set Up: BUY (Market Order): Stop loss 0.7240 and take profit 0.7400.
Stop loss: 62 PIPS
Take Profit: 99 PIPS
