CADCHF Technical Trading Strategy – Mind the Bulls

CADCHF Trading Strategy

The reversed Head-And-Shoulders (H&S) with the inverted hammer suggests the market bulls are ready to reload their  long trades into CADCHF in the FX Markets.

key support level noted at 0.7953.

CADCHF Weekly Chart

CADCHF Weekly Chart

Despite the great volatility that is expected in the markets (China Consumer Price Index (CPI) and Trade Balance, Yellen’s testimony and the European Central Bank (ECB) monetary policy decision) our protective stop loss is expected the withstand the intraday noise.

Holding a long trade in CADCHF means we would also enjoy from the swap when the trade is rolled over, thus assuring the duration of the trade is not our primary concern.

To determine our take profit for the FX cross,  the 100% objective of the reversal pattern lies at CHF 0.8520. However, we would look to liquidate part of the position at  CHF 0.8275.  For our protective stop loss order, we cannot overrule another leg of declines before moderate gains, possibly due to the upcoming employment data from Canada this Friday. To protect the long trade from the intraday noise we layer our protective stop loss order at CHF 0.7824.

Keep following this page for future updates on this trade.

CADCHF Trade Details

CADCHF Long @ Market Price
Take Profit:  0.8520
Protective Stop: 0.7824
Estimated Duration: 14 days
Risk Ratio (RR): 1 : 2.5 (approx.)

07/05/14 UPDATE: CADCHF long trade is in a profit of  +24 pips (approx.) at the time of this writing.

08/05/14 UPDATE: CADCHF long trade is in a profit of +34 pips (approx.) at the time of this writing.

08/05/14 UPDATE II: CADCHF is in +60 pips profit at the time of this writing. We are liquidating 25% of the trade at market price (0.8070).

08/05/14 UPADTE III: CADCHF is in +75 pips profit at the time of this writing (current price: 0.8085). Due to the employment data that will be released tomorrow, the protective stop is shifted to the entry and another 15% of the trade is liquidated at market price.

08/05/14 UPDATE PART IV: CADCHF is in +95 pips profit at the time of this writing.  Current price : 0.8105.

08/05/15 UPDATE V: CADCHF is in +117 pips profit at the time of this writing. Protective stop is shifted above the entry to 0.8027 and another 10% of the trade is liquidated at current price,0.8127.

09/05/14 UPDATE: CADCHF is in +158 pips profit at the time of this writing, minutes before the Canadian employment data.
Current price: 0.8168

12/05/14 UPDATE:  CADCHF recovered from Friday’s employment data. Protective stop loss order is shifted to 0.8030.

15/05/14 UPDATE: CADCHF trade is in a profit of +218 pips at the time of this writing. We are liquidating 20% of the trade and shifting the protective stop loss order to 0.8110.

13/06/14 UPDATE: Following recent technical developments, it appears there is a mild potential for a deep reversal in CADCHF. We decide to close the remaining trade at market price,  0.8256.

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