As noted in a prior comment here, the rejection by 1.2 key resistance made EUR/CHF short candidate for reversal when D Action Bias started to turn downside red. Subsequent development turned out to be in line with this near term bearish view.
6H Action Bias turned neutral after the decline halted at 1.1705 and turned into consolidation. But during the three bars, D Action Bias stayed downside red, thus maintaining near term bearishness. In the meaning, W Action Bias turned neutral too, indicating loss of medium term up side momentum. So the stage is set for deeper fall.
Now, H Action Bias and 6H Action Bias both turned downside red, suggesting that the decline is ready to resume.
Sell on break of 1.1705 could be a way to ride on the decline, with stop at 1.1780. 61.8% retracement of 1.1445 to 1.2004 at 1.1659 is an easy target. But for position trading, the target will be between 1.1445 and 38.2% retracement of 1.0629 to 1.2004 at 1.1479. But of course, we’ll monitor 6H Action Bias and get out if it turns neutral, indicating another consolidation or reversal.
CADJPY at an appropriate level to exit long
Following up on a comment here, CADJPY’s rally extended as expected and reached as high as 87.09, just inch below mentioned target of 61.8% projection of 80.52 to 85.75 from 83.88 at 87.11. We’d talked about putting the exit at slightly below 87.11 at 87.00 and it’s filled.
From Action Bias point of view, H Action has been neutral for some time, suggests a lack of impulsive momentum. The 6H Action Bias chart also doesn’t show persistent blue bars. Therefore, we’d maintain our view that while further rise cannot be ruled out, current level is an appropriate level to exit long.