CAD/CHF has respect 0.69200 for all of August and September, touching on multiple occasions reversing for short periods. This was the September open candle zone.

CAD/CHF

Price pierced through this major level and holding above forming a possible triangle / Flag continuation pattern for at least a short time advance to 0.7000.

The Asian session is low liquidity for CAD/CHF which will most likely complete the bounce within the pattern primed for the London/US session breakout.

Key Points:

  • September OPEN PRICE = 0.69226
  • Price holding above the 200 EMA
  • Price holding above the 50 EMA
  • 50 EMA crossing above 200 EMA
  • Fibonacci 38.2% Retracement cluster with 0.69200 (September high – September low range)
  • Triangle or possible flag pattern for break out

Key Levels:

Support – 0.69200, 50 EMA, 200 EMA

Resistance – 0.69585, 0.69800, 0.70000

Entry Zone:

Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.

Optimal Entry – 0.69215

Supporting Entry – 0.69300

Candle Reversals for entry

  • Bullish Hammer
  • Bullish Engulfing
  • Bullish PiercingCandlestick

 

The Risk:

As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.

If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

 

IF: Price breaks below 0.69060 level and violates 200 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

 

Reward / Reward Targets:

Optimal Entry 0.69215 – Target 1 0.69585 =2.3x Reward to Risk

Optimal Entry 0.69215 – Target 2 0.69800 = 3.7x Reward to Risk

Optimal Entry 0.69215 – Target 3 0.70000 = 5x Reward to Risk

 

Supporting Entry 0.69300 – Target 1 0.69585 = 1.2x Reward to Risk

Supporting Entry 0.69300 – Target 2 0.69800 = 2x Reward to Risk

Supporting Entry 0.69300 – Target 3 0.70000 = 3x Reward to Risk