CADCHF - Are We Still In An Upwards Trend?Analysis:
Looking at the chart things may look bearish to the untrained eye as we've had a strong recent move to the downside, however price to us still looks bullish and this is the last line of defence so we expect that this is where most of the bulls will be wanting to push price higher from. We still think that price is in an upwards trend as we haven't broken the most recent higher low. Whilst some people may think we put in another higher low at the top of the move, we didn't as price didn't break higher so we never formed a higher low, just a higher high, meaning that our area we have marked out is where the most recent higher low is. This may be difficult to understand but this is how we see the market trend. At this area we have marked out, in the past we can see that this level has held as both support and resistance so we'd expect this to happen again, making it a great possible entry zone. To add to our idea we also have the 50% fib retracement level which has been tagged so we expect to see some sort of bullish pressure from this level as this is where some bulls will be sat at wanting to hold price and push it higher, which goes in favour of our idea. Fundamentally the CAD is the 4th strongest major currency compared to the CHF which is the 3rd weakest major currency, so this is already favouring our bullish idea. As of the most recent report for institutional positioning we did see a big decrease in long positions but we saw a 2 times bigger decrease in short positions so this is bullish for the CAD. For the CHF, in regards to institutional positioning we did see an increase in both long and short positions so this is slightly bullish for the CHF, but not as bullish as the CAD is. Tomorrow we have some big news coming out for the CAD so this could give us the catalyst that we need to see price head to the upside and for the CAD to make its bullish run. Fundamentals are what actually drive the markets, so whilst the technicals don't look that clear to the untrained eye, the fundamentals are clear. The CAD is stronger then the CHF. This is why overall we are bullish on CADCHF.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read and responded to. We any comments at all so thank you!
Stay Safe - The JPI Team
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does too. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
