Good morning Forex Kings,
Let’s keep this winning run going!
Today we are looking at the CADCHF, this is a text book trade set up.
Overnight markets recovered as Joe Biden became the front runner for the Democratic Party. This has been seen as bullish for Wall Street as he is not ‘anti establishment’. Additionally US lawmakers proposed an $8bn deal to fund a response against the corona-virus. Global Indices have pushed higher from the large scale sell off.
This suggests we may see weakness flowing into safe haven currencies – JPY, CHF and GOLD. Commodity related currencies are also strengthening, AUD, NZD and the CAD.
The Bank of Canada cut interest rates by 50 basis points last night, however the CAD had already priced in the move.
CADCHF – Weekly Charts
The weekly charts are now forming a morning start formation, this can signal a reversal in the market.
CADCHF – Daily Charts
The daily charts have created a major double bottom suggesting we could see a retracement higher. The RSI is also extremely oversold.
CADCHF – 4 Hour Charts
The 4 hour charts are signalling a bullish divergence, we will now look to buy the pair initially targeting the 0.7260 level.
Trade Setup: BUY (Market price 0.7143), stop loss set at 0.7080, and take profit at 0.7260
Stop loss: 63 PIPS
Take profit: 117