Overall, the Swiss Franc is starting to get weak based on multiple XXX/CHF pairs analysis as well as gold. If this is true, it will certainly help CAD/CHF to test the upside resistance and could even push the price much higher.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Trade Idea Details:
CAD/CHF symbol on the MT4 platform
Type: Bullish
Key support levels: 0.6930
Key resistance levels: 0.6972
Price Action:
On July 8, CAD/CHF has found the bottom at 0.6917, where RSI formed a bullish divergence, suggesting a potential trend reversal to the upside. Price went up, ut on the first attempt failed to break above the downtrend trendline and pulled back towards the 61.8% Fibs which was rejected.
We have applied another Fibonacci retracement indicator to the June 29 – July 1 corrective move up. There are two levels that could be worth attention. First is the 78.6% Fibs at 0.6930 and second is the 23.6% Fibs at 0.6972.
The 78.6% Fibonacci support is clearly corresponding to the 61.8% Fibs, both of which were rejected along with the 50 Exponential Moving Average. After this, CAD/CHF went up and this time broke above the downtrend trendline as well as previous high at 0.9641. This goes to show the bullish power, which is likely to continue in the short term. If that is the case, price is likely to move towards 23.6% Fibs at 0.6972 (Potential Take Profit). Keep in mind the 0.6929 level as a potential StopLoss.
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