The CADCHF has declined from its last minor rally in its general downtrend as visible in this H4 chart. The pair currently trades at the same support level which allowed it to launch its previous rally. This rally may not be as strong as the previous one due to its declining resistance level.
MACD remained bearish and continues to show weakness which points at potential future declines after a minor rally. RSI has reached oversold territory and validates a minor bounce in order to keep the general downtrend intact.
We recommend taking a long position at 0.9335 with a potential second entry level at 0.9295. Should this pair reach that level we also recommend traders to hedge their position with a short position before adding to existing long positions.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 0.9295 as we do not use stop loss levels and execute this trade as mentioned. Place your take profit level at 0.9375.
