The CAD/CHF pair has been in a downtrend since June 2021, reaching a low of 0.6489 on October 26, 2023.
- However, the pair has shown some signs of a reversal in the last few days, forming a bullish engulfing candlestick pattern on the daily chart on October 25, 2023. This indicates that the buyers have taken control of the market and are pushing the price higher.
- The pair has also broken above the descending trendline that has been acting as a resistance since July 2021, signaling a possible change in the trend direction.
- The pair is now facing the next resistance level at 0.6524, which is the high of October 21, 2023. If the pair can break above this level, it could open the door for further gains towards the next resistance levels at 0.6560 and 0.6600, which are the highs of September and August 2021 respectively.
- The pair is also supported by the rising 50-day moving average (MA), which is currently at 0.6497. The 50-day MA acts as a dynamic support level that follows the price trend. As long as the pair stays above this level, the bullish bias remains intact.
- The pair is also trading above the 200-day MA, which is currently at 0.6478. The 200-day MA is a long-term indicator of the market trend. A break below this level would invalidate the bullish scenario and suggest a continuation of the downtrend.
- The relative strength index (RSI) is currently at 57.5, indicating that the pair has some room to rise before becoming overbought. The RSI is a momentum indicator that measures the strength of the price movements. A reading above 70 indicates that the pair is overbought and may face a correction or reversal. A reading below 30 indicates that the pair is oversold and may bounce back or reverse.
- The stochastic oscillator is currently at 86.9, indicating that the pair is overbought and may face a pullback or reversal. The stochastic oscillator is a momentum indicator that compares the closing price of the pair to its price range over a certain period of time. A reading above 80 indicates that the pair is overbought and may face a correction or reversal. A reading below 20 indicates that the pair is oversold and may bounce back or reverse.
In conclusion, based on the technical analysis, CAD/CHF has a bullish outlook in the short-term as long as it stays above the key support levels of 0.6497 and 0.6478. The pair could target the next resistance levels of 0.6524, 0.6560 and 0.6600 if it breaks above the current resistance level of 0.6508. However, if the pair falls below the support levels of 0.6497 and 0.6478, it could resume its downtrend and test the next support levels of 0.6450 and 0.6400.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice or recommendation. Trading forex involves risk and you should only trade with money you can afford to lose.
Source: Conversation with Bing, 30/10/2023
(1) CADCHF Chart, Rate and Analysis — TradingView. www.tradingview.com/symbols/CADCHF/.
(2) CAD CHF Chart - Investing.com. www.investing.com/cu...ncies/cad-chf-chart.
(3) CAD/CHF Price Chart & Exchange Rate History - eToro.. www.etoro.com/markets/cadchf/chart.
(4) CAD to CHF Exchange Rate - Bloomberg.com. www.bloomberg.com/quote/CADCHF:CUR.
(5) CAD/CHF - Live Rate, Forecast, News and Analysis - DailyFX. www.dailyfx.com/cad-chf.
- However, the pair has shown some signs of a reversal in the last few days, forming a bullish engulfing candlestick pattern on the daily chart on October 25, 2023. This indicates that the buyers have taken control of the market and are pushing the price higher.
- The pair has also broken above the descending trendline that has been acting as a resistance since July 2021, signaling a possible change in the trend direction.
- The pair is now facing the next resistance level at 0.6524, which is the high of October 21, 2023. If the pair can break above this level, it could open the door for further gains towards the next resistance levels at 0.6560 and 0.6600, which are the highs of September and August 2021 respectively.
- The pair is also supported by the rising 50-day moving average (MA), which is currently at 0.6497. The 50-day MA acts as a dynamic support level that follows the price trend. As long as the pair stays above this level, the bullish bias remains intact.
- The pair is also trading above the 200-day MA, which is currently at 0.6478. The 200-day MA is a long-term indicator of the market trend. A break below this level would invalidate the bullish scenario and suggest a continuation of the downtrend.
- The relative strength index (RSI) is currently at 57.5, indicating that the pair has some room to rise before becoming overbought. The RSI is a momentum indicator that measures the strength of the price movements. A reading above 70 indicates that the pair is overbought and may face a correction or reversal. A reading below 30 indicates that the pair is oversold and may bounce back or reverse.
- The stochastic oscillator is currently at 86.9, indicating that the pair is overbought and may face a pullback or reversal. The stochastic oscillator is a momentum indicator that compares the closing price of the pair to its price range over a certain period of time. A reading above 80 indicates that the pair is overbought and may face a correction or reversal. A reading below 20 indicates that the pair is oversold and may bounce back or reverse.
In conclusion, based on the technical analysis, CAD/CHF has a bullish outlook in the short-term as long as it stays above the key support levels of 0.6497 and 0.6478. The pair could target the next resistance levels of 0.6524, 0.6560 and 0.6600 if it breaks above the current resistance level of 0.6508. However, if the pair falls below the support levels of 0.6497 and 0.6478, it could resume its downtrend and test the next support levels of 0.6450 and 0.6400.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice or recommendation. Trading forex involves risk and you should only trade with money you can afford to lose.
Source: Conversation with Bing, 30/10/2023
(1) CADCHF Chart, Rate and Analysis — TradingView. www.tradingview.com/symbols/CADCHF/.
(2) CAD CHF Chart - Investing.com. www.investing.com/cu...ncies/cad-chf-chart.
(3) CAD/CHF Price Chart & Exchange Rate History - eToro.. www.etoro.com/markets/cadchf/chart.
(4) CAD to CHF Exchange Rate - Bloomberg.com. www.bloomberg.com/quote/CADCHF:CUR.
(5) CAD/CHF - Live Rate, Forecast, News and Analysis - DailyFX. www.dailyfx.com/cad-chf.