CADCHF - Inception!
|This piece will be about an instrument, which is definitely not the most popular on the market. Despite the fact that its a minor pair, we do have an interesting technical situation here, which I can easily call 'Inception'.
CADCHF is having a symmetric triangle pattern, which is exactly in the middle of a bigger symmetric triangle pattern. This is really interesting especially, that the price is breaking the lower line of the smaller triangle as we speak, which may be a proper signal to go short. Where is the potential target for this drop? Yes, you are right, it is on the lower line of the bigger triangle. In terms of the risk to reward ratio, this setup is really sweet and you should at least look at it ( potential profit is around four times bigger than the potential loss).
As for now, buyers try some kind of a reversal, so let them do this. Price finishing a day below the blue horizontal resistance will be for us a clear signal to open shorts.
Tomasz Wisniewski
Chief Analyst Alpari Research & Analysis Ltd (UK)
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