If we look at the daily chart of CADCHF, we can see the completion of a double top reversal pattern, which has formed immediately after the resistance level 0.76208 was rejected. This downward move is likely to continue in the short term as Tenkan Sen is sloping downwards suggesting there is some strong momentum behind the move. It is worth noting that Senkou Span A and Senkou Span B are diverging indicating a thicker future Kumo could potentially form providing much more significant support by the Kumo which could oppose the downward movement.  Senkou Span B remains flat indicating significant support at this price level.

CADCHF

Looking at the 4-hour chart of CADCHF we can see that the price has broken and closed below the Kumo and Tenkan Sen indicating a bearish outlook. However, we can see that the Chikou Span is firmly within price suggesting that we are likely to see price range. A short position is only favoured to price level 0.75500 in the short-term. It is unlikely that we will see the price in a downward trend until there is a bearish Kumo breakout on the daily chart.

CADCHF

Information provided by Sachin Kotecha and/or Sach Capital Limited is for illustrative and educational purposes only and is not considered financial advice. Sach Capital Limited can’t be held liable for your trading losses. Sach Capital Limited does not in any way guarantee that this information is free from mistakes or errors. Trading CFDs, Spread Bets, and Foreign Exchange carries a high level of risk to your capital and may not be suitable for everyone. Ensure you fully understand the risks involved and seek independent advice if necessary.

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