CAD/CHF developed a bullish momentum during last 2 months… It seems that this price action developed 5 bullish waves and now the correction of wave A around the corner.
We will review different scenarios as the pair can either bounce for bearish correction or expand the bullish momentum.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
As the below chart shows, the pair developed a strong bullish momentum… In my view, the pair now is in wave 5 and cloud end this last bullish wave soon at -27.2% Fibonacci level. -27.2% Fibonacci level is a key spot for confirming or invalidating the start of Wave A.
And here are the main conclusions:
For the moment I expect a new down momentum for wave A but we still need more confirmation before trading this pair… in the next paragraph, we will discuss this development by using SWAT software.
Now it’s time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bullish momentum but some developments to confirm the Bearish wave A starts… Here are the main developments to consider:
1. There is bearish divergence which makes downside more likely.
2. Waiting for the price to break the 21 ema with a strong bullish candle will be our entry.
3. Our target will be around 144 ema.
4. I advise traders always to protect their profit or use trailing stops.
So in my view, traders should wait for the confirmation before trading this pair and look for sell opportunity only as it matches the expected wave.
Follow me on Twitter