CADCHF Intraday Analysis and Trading Plan For May 21, 2024
Rafael Ken Aguilar
CADCHF·
May 21 2024
Stop Loss -0.45%
Holding time 8d21hr
0.66699
Entry price
0.66397
Stop loss price
1
CADCHF’s long term enjoys a 5-month green streak but the last 2 months including April and May show signs of cooling down. Will we see another leg upward?
Happy Tuesday.
To end my Finlogix analyses for today, I am including the CADCHF in my long cross pairs’ list.
Upcoming High Impact Economic Report
There are 3 Canadian high impact economic reports later this evening while none in Switzerland.
Intraday Analysis
Assessing the CADCHF’s high timeframe candles:
Yearly Candle: A Green Body with a Longer Head Wick
Monthly Candle: Both previous and current are Green Long-Legged Doji with Small Body
Weekly Candle: Previous close is a Green Body with a Longer Tail Wick current is a Small Green Spinning Top
Daily Candle: Previous close is a Green Body with a Longer Tail Wick current is a Red Long Lower Shadow
On the yearly view, we can see a 2023-2024 double bottom pattern around the 0.63 levels. This is an indication that the cross pair is ready to challenge 2023’s top.
Plenty of work to be done by the bulls.
Meanwhile, on the 4H view, we can see a long scam wick on April 19 that got delayed after weaker CAD CPI figures by April 16.
This paved the way in another challenging rally towards the 0.67 resistance level that got rejected first on April 4.
As another set of Canadian CPI figures coming out Tuesday, CADCHF’s price is tightly ranging between 0.6660-0.6680 levels after a successful breakout from a 2-week 0.66-0.6650 sideway consolidation.
I can see 2 possible scenarios as we head on the mid-week.
First, if we see weaker Canadian CPI figures again for the 4th session, sellers will spoil the current tight range to the down side and we revisit the scam wick’s range.
Second, if we see stronger CPI figures, we will see another push up rally that targets April’s external highs as shown above.
Trade Plan
Since I’m betting for a second scenario, I will open a long position through the current tight range targeting breakout take profit above April’s external resistances.
In case I am wrong, I’ll be putting a swift stop loss exit only and adjust the next trade plan accordingly.
Here are the long orders to follow:
Buy Entry: 0.6670
Stop Loss: 0.6640
Take Profit: 0.6750
Risk to Reward Ratio: 2.67
Conclusion
Let’s see how this one goes and good luck.
All trade ideas I share are my own views and for my own trades only.
Copy trading and trading directly involve risks.