CAD/CHF 4H Timeframe AnalysisCAD/CHF 4H Timeframe Analysis
Trend Analysis
On the 4-hour timeframe, CAD/CHF is in an uptrend, having recently broken above the minor key resistance at 0.63300. Following this breakout, buyers initially stepped in, preparing for the continuation of the trend.
However, the price only accumulated a large volume of buyers before reversing downward, breaking below the minor key level to hunt for stop-losses. This phase represents the manipulation phase within the liquidity zone.
Now, the price is poised to move upward again, breaking above the key resistance to resume the buy trend. With liquidity formation complete, we aim to capitalize on the next breakout for trend continuation.
Price Action Expectation:
Wait for the price to break above the minor key resistance at 0.63400, confirming the continuation of the uptrend.
Plan to enter after the breakout for optimal trade positioning.
Trade Setup
Trade Type: Buy Stop
Entry: 0.63400 (upon confirmation of the breakout above resistance)
Stop Loss: 0.63080 (below the liquidity zone to avoid false breakouts)
Take Profit: 0.64050 (targeting the next significant resistance level)
This setup ensures a strategic approach, leveraging liquidity formation and trend continuation.
Fundamental Outlook:
Monitor Swiss economic indicators, as well as global risk sentiment, which tends to influence CHF strength as a safe-haven currency.
The interplay between these factors could provide additional momentum for the continuation of the bullish trend.
Risk Management:
Maintain a 1:2+ risk-to-reward ratio to optimize potential returns.
Position size should be calculated based on your account equity and risk tolerance.
Closely monitor liquidity zones to avoid premature stop-outs.
Trading involves substantial risks and may not be suitable for all investors. Always seek guidance from a financial professional if you’re unsure about trading decisions.
