CADCHF S/R Flip Retest| Structural Resistance| Long Trade Setup

Evening Traders,

Today’s analysis – CADCHF –broke local resistance from oversold conditions; next technical target is at structural resistance.

Points to consider,
- S/R Flip retest
- Structural resistance (trade location)
- RSI above 50
- Stochastics in an rising wedge

CADCHF needs to put in an S/R flip retest to validate support, this retest will allow for a long entry with defined risk.

The immediate target is structural resistance; a back test of this trade location is likely due to the initial impulse move down.

The RSI is above 50 after recovering from oversold conditions whilst the stochastics is in a valid rising wedge formation. A breakdown is likely which will coincide with the S/R flip retest.

Overall, in my opinion, CADCHF will likely put in a retest at local support allowing for a long entry. Risk will be defined by the recent swing low.

What are your thoughts?

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And remember,
“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas