This piece will be about an instrument which is definitely not the most popular on the market. Despite the fact that it’s a minor pair, we have an interesting technical situation here, which I can easily call ‘Inception’.
CADCHF is in a symmetrical triangle pattern, which is directly in the middle of a bigger symmetrical triangle pattern. This is really interesting especially considering the price is breaking the lower line of the smaller triangle as we speak, which may be a proper signal to go short. Where is the potential target for this drop? Yes, you are right, it is on the lower line of the bigger triangle. In terms of the risk-to-reward ratio, this setup is really sweet, and you should at least have a look at it (the potential profit is around four times bigger than the potential loss).
For the time being, buyers are attempting some kind of reversal, so let them. If the price finishes the day below the blue horizontal resistance this will be a clear signal for us to open shorts.
