Overview:-By looking at the daily technical chart we can see that cadchf is heading north side with a double bottom price pattern however, the earlier pair was heading south side with full of bearish momentum and breaking all the major and minor support levels. But in the last couple of weeks, we witnessed that bears denied to go down further and bulls took the charge at a slow speed but yesterday a massive bullish attempt can be seen where from starting of the day bulls did not stop and took the pair at 0.6815 level which was a fabulous move.
Technical Analysis:-From a technical perspective we can see that a double bottom pattern has been completed in so well manner on the chart. The way bulls are reacting it seems like they are approaching the 0.9950 level in the near term. The recent candle is a bullish hammer candlestick on all the major and minor EMA lines which is providing us with a bullish signal. A bullish crossover on the MACD indicator is favoring the bulls RSI is moving above 50 line which is providing us a bullish signal. Overall the set up is indicating that further bullish momentum is on the cards.
What next:-.A daily closing above the 0.6910 level will open the way toward the 0.7150 level and it will give us further confirmation of bullishness. Well, the way bulls have snatched the bite from the bear’s mouth it seems like bulls are going to rock for further sessions as the pair is already trading between the crossed moving average lines. Yesterday we have witnessed a big bullish marabuzo candlestick in the form of bullish engulfing candlesticks which is providing us a bullish signal.
Trade idea : Based on chart and studies above we can say that buy above 0.6910 target is 0.7150-0.7300. with the stop loss of 0.6750.
