The Canadian Dollar has been constrained in a channel up against the Swiss Franc. The Loonie tested the upper boundary of this pattern and a senior channel circa 0.7910, being followed by a strong period of decline.
The pair’s movement during the past three sessions reveals the formation of a head-and-shoulders pattern. However, in order to confirm this bullish pattern, the Loonie has to breach a significant resistance set by the 55– and 100-hour SMAs circa 0.7770.In case this scenario is to occur, a possible upside target in the short term could be the 200-hour SMA and the upper boundary of the most junior channel circa 0.7820.
On the other hand, a breakout of the monthly PP should result in a re-test of the trend-line circa 0.7660—an area which is likewise reinforced by the monthly S1 and the weekly S2.
The pair’s movement during the past three sessions reveals the formation of a head-and-shoulders pattern. However, in order to confirm this bullish pattern, the Loonie has to breach a significant resistance set by the 55– and 100-hour SMAs circa 0.7770.In case this scenario is to occur, a possible upside target in the short term could be the 200-hour SMA and the upper boundary of the most junior channel circa 0.7820.
On the other hand, a breakout of the monthly PP should result in a re-test of the trend-line circa 0.7660—an area which is likewise reinforced by the monthly S1 and the weekly S2.