7 Reasons why I'm going to sell CADCHF on Monday

Here we go - 7 reasons why CADCHF looks nice for a sell.

1. Friday’s bearish pin bar reversal off the 9396 level 

2. It is testing the 0.618 Fibonacci Retracement (which overlaps near perfectly to the 9396 level (taken from the swing high of the 10^th December to the most recent swing low of the 28^th December). 

3. The 9396 level corresponds also with the 0.386 Fibonacci Retracement level (taken from the swing high of the 7^th September to the most recent swing low of the 28^th December) 

4. The 0.50 Fibonacci Retracement level too overlaps with the level when drawn from the swing high of 7^th November to the December swing low. 

5. An overlap of three Fibonacci Retracement levels on our horizontal level is a rare treat known as a ‘Fibonacci Cluster’.

6.   As the close on Friday for USDCHF was a high test bar off a the previously tested 50ema (looking bearish)...

7... while the USDCAD gives the appearance of being infinitely more range-bound – this gives us an extra clue that The Swiss Franc stands a far greater change of strengthening against the US Dollar than the US Dollar has of weakening against the Canadian Dollar so that corresponds nicely with our interpretation of the chart for a CADCHF sell.

I shall trade this by placing a sell entry and the break of Friday’s low (minus the spread) with our stoploss above Friday’s high (plus spread) with a target just in advance of the December swing low – for a higher probability/lower reward outcome.