CAD/CHF Daily Price Forecast – 13th May 2025

CAD/CHF Daily Price Forecast – 13th May 2025

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Trade Summary:

CADCHF
Buy Stop @ 0.60428
TP @ 0.60688
SL @ 0.60115

CAD/CHF Technical Analysis

Timeframe: H4 (4-Hour Chart)

The chart provided shows a technical setup for the CAD/CHF currency pair. Below is a detailed analysis based on the chart:

Key Observations:

• Trend Analysis:

  • The price is currently in an uptrend, as indicated by the higher highs and higher lows.

  • The moving averages (yellow and red lines) are aligned in a bullish configuration:

    • The yellow line (shorter moving average) is above the red line (longer moving average), confirming bullish momentum.

• Entry Point:

  • A Buy Stop order is placed at 0.60428, slightly above the current price level. This indicates a strategy to enter the market only if the price continues to rise, confirming bullish momentum.

• Stop Loss (SL):

  • The Stop Loss is set at 0.60115, below the recent support level. This placement minimizes risk by exiting the trade if the price reverses and invalidates the bullish setup.

• Take Profit (TP):

  • The Take Profit is set at 0.60688, near a resistance level. This level is strategically chosen to lock in profits before the price potentially faces selling pressure.

• Support and Resistance Levels:

  • Support: The area around 0.60115 acts as a strong support level, as the price has previously bounced from this zone.

  • Resistance: The area near 0.60688 is a key resistance level, where the price may face selling pressure.

• Candlestick Patterns:

  • Recent candlesticks show bullish momentum, with strong green candles breaking above previous consolidation zones.

• Moving Averages:

  • The 50-period moving average (yellow) and the 200-period moving average (red) are sloping upwards, further confirming the bullish trend.

Trade Setup Summary:

• Entry: Buy Stop at 0.60428.

• Stop Loss: 0.60115 (below support level).

• Take Profit: 0.60688 (near resistance level).

• Risk-Reward Ratio: The distance between the entry and stop loss is smaller than the distance to the take profit, offering a favorable risk-reward ratio.

Potential Scenarios:

• Bullish Continuation:

  • If the price breaks above 0.60428, it is likely to reach the take profit level at 0.60688, as the bullish momentum is strong.

• Reversal Risk:

  • If the price fails to sustain above 0.60428 and breaks below 0.60115, the trade will hit the stop loss, signaling a potential trend reversal.

Conclusion:

The CAD/CHF pair is showing a bullish setup on the H4 chart. The trade plan is well-structured with a favorable risk-reward ratio. However, traders should monitor the price action closely, especially around the entry and resistance levels, to confirm the continuation of the bullish trend.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It’s widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it’s easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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