The CAD/CHF seems to be repeating the previously produced pattern. In June, the price broke below the uptrend trendline and the 50 Exponential Moving Average simultaneously. After this, the consolidation phase started but eventually, there was quite a substantial price decline.
On September 9, CAD/CHF tested and rejected a key psychological resistance at 0.7000, after which it went down sharply and yet again broke below the downtrend and the 50 EMA simultaneously. As before, the consolidation phase has been taking place, up until the point where the average-price downtrend trendline was rejected. Not only the trendline but also a 38.2% Fibonacci at 0.6972 was rejected.
Perhaps this was the end of the consolidation and right now we see that price broke below the 50 EMA, which could be the beginning of a strong downside move. The key support could be located at 0.6670, which corresponds to 88.6% Fibs as well as 261.8% Fibs applied to the current corrective phase.
All this price action might suggest that as long as the price remains below 0.7000, CAD/CHF downtrend is highly likely to continue. It most probably will result in a price drop of over 200 pips from the current level.
Key support levels: 0.6860, 0.6670
Key resistance levels: 0.6972, 0.7000
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
On September 9, CAD/CHF tested and rejected a key psychological resistance at 0.7000, after which it went down sharply and yet again broke below the downtrend and the 50 EMA simultaneously. As before, the consolidation phase has been taking place, up until the point where the average-price downtrend trendline was rejected. Not only the trendline but also a 38.2% Fibonacci at 0.6972 was rejected.
Perhaps this was the end of the consolidation and right now we see that price broke below the 50 EMA, which could be the beginning of a strong downside move. The key support could be located at 0.6670, which corresponds to 88.6% Fibs as well as 261.8% Fibs applied to the current corrective phase.
All this price action might suggest that as long as the price remains below 0.7000, CAD/CHF downtrend is highly likely to continue. It most probably will result in a price drop of over 200 pips from the current level.
Key support levels: 0.6860, 0.6670
Key resistance levels: 0.6972, 0.7000
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.