Today, the Swiss National Bank left its key interest rate unchanged at -0.75%. The Swiss Franc grew on optimistic Monetary Policy Assessment.
The SNB stated that “the SNB is revising down its growth forecast for the coming quarters. Over the short term, international momentum is likely to be modest. However, in the medium term the SNB expects the global economy to pick up again, not least due to monetary policy easing measures. Inflation is then expected to rise again gradually”. They also stated that “The Swiss economy continued to grow at a moderate rate in the second quarter. Developments on the labour market also remained positive. Employment figures continued to rise, and the unemployment rate remained stable at a low level.”
As a result, CADCHF saw bearish momentum. The pair has since retraced about 50% of the movement and the Canadian dollar grew due to an increase in oil prices, because of re-newed uncertainties about the risk of supply. The Canadian Dollar is a 'commodity currency' because Canada exports a large amount of natural resources, notably oil.
On the economic calendar for tomorrow there is the release of Canadian Core Retail Sales at 12:30GMT.
On the technical front, on a 4HTF, the price re-entered the Ichimoku Cloud and we failed to get a TK cross to the downside. We see that the price is very respectful to the 61.8% Fibo level around 0.74493.
We also want to note, that the price rebounded from a strong area of resistance on September the 11th when the pair formed the head on a head and shoulders pattern.
Short positions may be considered after the pair breaks the 61.8% fibo level at 0.74493, down. Target areas will become areas of resistance turned support at 0.74178, then 0.73785 followed by 0.73609.
Targets up are at the 23.6% Fibo 0.75201 and then our trend line around 0.75600.
The SNB stated that “the SNB is revising down its growth forecast for the coming quarters. Over the short term, international momentum is likely to be modest. However, in the medium term the SNB expects the global economy to pick up again, not least due to monetary policy easing measures. Inflation is then expected to rise again gradually”. They also stated that “The Swiss economy continued to grow at a moderate rate in the second quarter. Developments on the labour market also remained positive. Employment figures continued to rise, and the unemployment rate remained stable at a low level.”
As a result, CADCHF saw bearish momentum. The pair has since retraced about 50% of the movement and the Canadian dollar grew due to an increase in oil prices, because of re-newed uncertainties about the risk of supply. The Canadian Dollar is a 'commodity currency' because Canada exports a large amount of natural resources, notably oil.
On the economic calendar for tomorrow there is the release of Canadian Core Retail Sales at 12:30GMT.
On the technical front, on a 4HTF, the price re-entered the Ichimoku Cloud and we failed to get a TK cross to the downside. We see that the price is very respectful to the 61.8% Fibo level around 0.74493.
We also want to note, that the price rebounded from a strong area of resistance on September the 11th when the pair formed the head on a head and shoulders pattern.
Short positions may be considered after the pair breaks the 61.8% fibo level at 0.74493, down. Target areas will become areas of resistance turned support at 0.74178, then 0.73785 followed by 0.73609.
Targets up are at the 23.6% Fibo 0.75201 and then our trend line around 0.75600.