CAD/CHF 1H Chart: Two scenarios likely
Downside risks has been dominated the CAD/CHF currency pair since the rate reversed from the upper boundary of a long-term descending channel at 0.7710.
The pair managed to reverse to the upside from the Fibonacci 50.00% at 0.7565. Currently, the exchange rate is trying to surpass the resistance cluster formed by a combination of the 55-, 100-, 200-hour SMAs, as well the weekly PP and the Fibonacci 61.80% in the 0.7601/0.7640 range. If given resistance holds, the pair go downside to the support cluster formed by the weekly S2, the monthly PP and the Fibonacci 38.20% in the 0.7487/0.7506 range.
Otherwise, the pair could re-test the upper channel line located near 0.7690.
The pair managed to reverse to the upside from the Fibonacci 50.00% at 0.7565. Currently, the exchange rate is trying to surpass the resistance cluster formed by a combination of the 55-, 100-, 200-hour SMAs, as well the weekly PP and the Fibonacci 61.80% in the 0.7601/0.7640 range. If given resistance holds, the pair go downside to the support cluster formed by the weekly S2, the monthly PP and the Fibonacci 38.20% in the 0.7487/0.7506 range.
Otherwise, the pair could re-test the upper channel line located near 0.7690.
Comment:
The Canadian Dollar has been trading in a triangle-like formation pattern against the Swiss Franc September. The currency pair re-tested the upper boundary of the pattern at 0.7680 on November 5.
The exchange rate has been moving sideways within a range of 0.7548 and 0.7700 since the beginning of October.
Everything being equal, it is likely that the CAD/CHF currency exchange rate increases its trading range during the following week.
Moreover, technical indicators on the weekly time-frame suggest a bullish sentiment during the next week trading sessions.
The exchange rate has been moving sideways within a range of 0.7548 and 0.7700 since the beginning of October.
Everything being equal, it is likely that the CAD/CHF currency exchange rate increases its trading range during the following week.
Moreover, technical indicators on the weekly time-frame suggest a bullish sentiment during the next week trading sessions.
Comment:
The Canadian Dollar has been depreciating massively against the Swiss Franc since the middle of November. The decline has been bounded by a triangle-like formation pattern.
Assuming that this triangle pattern is to hold intact for a couple of sessions, the Canadian Dollar should gain momentum and aim for its upper boundary near the 0.7648 region.
However, technical indicators suggest that the assumptions might not occur during the following trading session.
The technical sentiment demonstrates that a decline towards a support cluster at 0.7474 is likely today.
Assuming that this triangle pattern is to hold intact for a couple of sessions, the Canadian Dollar should gain momentum and aim for its upper boundary near the 0.7648 region.
However, technical indicators suggest that the assumptions might not occur during the following trading session.
The technical sentiment demonstrates that a decline towards a support cluster at 0.7474 is likely today.
Currently, the exchange rate is trading near the bottom border of the triangle pattern at 0.7629 and could be set for a breakout.
If this breakout occurs, the CAD/CHF currency pair could aim at a support cluster formed by the combination of the weekly and the monthly PPs near the 0.7580 during the coming trading sessions.
However, it is important to note that the 200-hour SMA at 0.7609 could provide support for the currency exchange rate from falling.