A head and shoulder set up is seen on the CADCHF pair’s 4 hour chart. The pattern does not look extremely accurate but has all the essential elements. The pattern is yet to form its second shoulder which gives opportunity to capture the downward move until the neckline area. This will also the be considered as the first target for the pair at 0.7477-0.7475. Once the second should is formed completely the next target will be 0.7744. The nearest stop loss for the pair is set at 0.75185. Even the RSI is trading below 50 ( indicating downtrend continuation) thus, supporting the above view on the CADCHF pair.
Yorum:
1st target achieved!