CADCHF has been on a strong downtrend and is near formation of a bullish bat. This is in confluence with a trendline support. There is an RSI bullish divergence. Upon pattern completion and confirmation of the bullish bias, I will go long. Stop loss is just below the X point. The take profit target is set at the 61.8 Fibonacci retracement level of the AD leg. Tentative details are as follows:
Nice idea on CADCHF and there may be bullish bias as you have you have identified. For our set up, we have identified the key resistance and support levels for the short term. The first support that we have identified is at 0.7369 ( horizontal swing low support, 100% Fibonacci extension , long term descending support line), which is at the level of your point D. Stochastic is approaching its support at 2.8% where a corresponding bounce could occur. If a bounce does occur, we may look at the 0.7471 (Horizontal pullback resistance, 100% Fibonacci extension , 50% Fibonacci retracement ), which is above the mid way of your take profit zone. Please have a look at our idea and share with us what you think.