On November 9th CAD/CHF broke above multiple resistances, suggesting the change in trend. From bearish to bullish. Price broke above the downtrend trendline, 200 Simple Moving Average and previous higher high. At the same time, 50 SMA crossed above the 200 SMA on the daily timeframe, forming a Golden Cross, which could also be a sign of a trend reversal.
As can be seen, after the break above all the resistances, CAD/CHF failed to test or reach the top of the ascending channel. Perhaps this will be something that the pair will try to accomplished during the next week or two. Currently, the price has corrected down and cleanly rejected the 88.6% Fibs at 0.6892, applied to the last wave up. Prior to that, the CAD/CHF rejected the 61.8% Fibs at 0.6872, forming a 20 pip wide support area between 0.6872 - 0.6892.
Because 0.8292 resistance was rejected, this could have been the starting point of an uptrend continuation. Nonetheless, CAD/CHF might still continue to range for the time being and even move down to test the 50% Fibonacci support at 0.6934, before/if the uptrend will continue. Perhaps this will be the price of interest for bulls, and as long as CAD/CHF remains above 0.6872, buying pressure is likely to start increasing.
There are several resistance areas to watch. The first is at 0.7034, which is the strong supply zone formed during the past 9 months. If it gets broken, CAD/CHF should be aiming for the 23.6% Fibs at 0.7074, where the price can spike above and test the top of the ascending channel. Finally, if the channel gets broken, CAD/CHF should be expected to rise further and can reach 0.7200 psychological resistance.
Key support levels: 0.6892, 0.6872, 0.6815
Key resistance levels: 0.7032, 0.7074, 0.7200
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
As can be seen, after the break above all the resistances, CAD/CHF failed to test or reach the top of the ascending channel. Perhaps this will be something that the pair will try to accomplished during the next week or two. Currently, the price has corrected down and cleanly rejected the 88.6% Fibs at 0.6892, applied to the last wave up. Prior to that, the CAD/CHF rejected the 61.8% Fibs at 0.6872, forming a 20 pip wide support area between 0.6872 - 0.6892.
Because 0.8292 resistance was rejected, this could have been the starting point of an uptrend continuation. Nonetheless, CAD/CHF might still continue to range for the time being and even move down to test the 50% Fibonacci support at 0.6934, before/if the uptrend will continue. Perhaps this will be the price of interest for bulls, and as long as CAD/CHF remains above 0.6872, buying pressure is likely to start increasing.
There are several resistance areas to watch. The first is at 0.7034, which is the strong supply zone formed during the past 9 months. If it gets broken, CAD/CHF should be aiming for the 23.6% Fibs at 0.7074, where the price can spike above and test the top of the ascending channel. Finally, if the channel gets broken, CAD/CHF should be expected to rise further and can reach 0.7200 psychological resistance.
Key support levels: 0.6892, 0.6872, 0.6815
Key resistance levels: 0.7032, 0.7074, 0.7200
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.