CAD/CHF – Price Action Analysis (SELL Bias) Take Profit: 0.57171

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Institutional Technical Breakdown | All Sessions


CAD/CHF has activated a SELL signal driven entirely by Price Action, supported by pattern recognition from the last 200 bars and aligned with bearish structural flow. The pair is trading near a well-protected supply zone, where repeated rejections are signaling weakening buyer strength and increasing downside probability.


This is a clean, technically driven setup with no major news distortions.

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Signal Summary


  • Bias: SELL
  • Model: Price Action
  • Risk/Reward: ~1:2.5
  • Conditions: All Sessions
  • Volatility: Moderate & stable

The algorithm identifies consistent bearish reaction patterns when price approaches the current resistance zone.

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Technical Outlook

1. Price Action & Structure

  • Price is currently reacting below the 0.57535 – 0.57565 resistance band, which has acted as a strong intraday supply zone.
  • Upper-wick rejections indicate aggressive sell pressure at higher levels.
  • Candle structure is compressing — often a precursor to a decisive breakout toward the nearest liquidity pocket.
  • Market flow shows a lower-high formation, supporting continuation to the downside.

2. Momentum Alignment

Even though this is primarily a price-action signal, supporting indicators show:
  • Bearish divergence formation
  • Weakening bullish momentum
  • Increased probability of a downside break
This adds strong confluence to the bearish idea.

3. Market Context

  • CAD remains neutral-to-weak across cross-pairs.
  • CHF remains supported by safe-haven flows.
  • No major news for CAD or CHF, keeping this setup purely technical.
  • All sessions provide stable liquidity for execution.

📌 Key Technical Levels

TypeLevel
Immediate Resistance0.57535
Immediate Support0.57475
Major Resistance0.57565
Major Support0.57445
Price is currently sitting just below these resistance levels — ideal for a bearish continuation setup.

🎯 Trade Parameters

  • Entry Price: 0.57505
  • Stop Loss: 0.57671
  • Take Profit: 0.57171
The stop-loss placement is safely above major resistance, protecting the trade from short-term volatility spikes.
The take-profit level targets the next liquidity zone, aligning with the broader bearish rhythm.

🧠 Trade Rationale

  • Rejection from multi-layered resistance (0.57535 / 0.57565).
  • Bearish divergence confirms momentum failure.
  • Strong supply overhead restricting bullish expansion.
  • Clean liquidity void down to 0.57171.
  • Structural lower highs support continuation.
Overall, this setup represents a textbook bearish price-action continuation opportunity.

📉 Risk Management Recommendations

  • Use 1–2% risk per trade maximum.
  • Optionally take partial TP at 0.57445, the first liquidity shelf.
  • Enable trailing stop once price breaks below 0.57445.
  • If a candle closes above 0.57671, bearish bias becomes invalid.

📌 Analyst Conclusion

CAD/CHF shows a high-quality bearish setup backed by clean price action, structural confluence, and momentum alignment. As long as price stays below 0.57535–0.57565, downside continuation toward 0.57171 remains the most probable path.
 
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