CAD/CHF Approaching Support at 0.9381
Written by Brad Gareiss   
Tuesday, 29 September 2009

Tags: Currency Trading | Technical analysis

The bullish butterfly on the CAD/CHF has completed and seen rapid support directly off the entry of the trade.  The pair has risen past T1 at 0.9495, so we have moved our stop to the original entry (0.9381).  This also means that we no long suggest entering this trade unless you are already in it.  At this point, the remainder of the trade will either be stopped out at 0.9381 or be taken out at T2 (0.9583).  I have placed the reasoning behind this trade below for those who missed it the first time around.

The CAD/CHF completed patterns that have provided strong support .  First, there is a bullish butterfly pattern on the 4hr Chart that is our primary pattern.  The pattern is very symmetrical quickly yielded support.  I like trading butterflies with two 161.8% ratios.  I am not certain, but I think it is because you can tell very quickly if the pattern doesn't work.  There is also a longer term bullish Gartley pattern on the Daily Chart that has added further convergence just below our buy entry at 0.9381.  The BC for this longer term pattern is the XA of the 4hr bullish Gartley.

We bought the CAD/CHF at 0.9381 (Point D).  Point D is located at the convergence of the following points:

  • 161.8% Fibonacci extension of XA on the 4hr Chart.
  • 161.8% Fibonacci extension of BC on the 4hr Chart.
  • AB=CD on the 4hr Chart.
  • 61.8% Fibonacci retracement of XA on the Daily Chart.
  • 161.8% Fibonacci extension of BC on the Daily Chart.
  • AB=CD on the Daily Chart.
  • If RSI falls below 30.
To recap, we bough the CAD/CHF at 0.9381 with our stop placed at 0.9304 (the stop has since been moved to 0.9381).  Our profit targets are 0.9495 (38.2% of CD) and 0.9583 (61.8% of CD).
 
 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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