- CAD/CHF is likely on verge of a bullish breakout.
- Technical indicators for the pair are turning bullish.
- Price action has edged above major EMAs after bullish divergence on Stochs.
- Stochs have rolled over from oversold levels and RSI is also above 50 levels.
- The pair is currently trading muted after previous session's spike with stiff resistance at 0.7615 (nearly converged 200-DMA and cloud).
- Breakout there could see further bullishness. Scope then for test of 61.8% Fib at 0.7686.
- Rejection at 200-DMA could see retrace till 21-EMA at 0.7565. Violation there could see further weakness.
Support levels - 0.7580 (50-DMA), 0.7565 (21-EMA), 0.7506 (23.6% Fib)
Resistance levels - 0.7615 (200-DMA), 0.7631 (50% Fib), 0.7686 (61.8% Fib)
Recommendation: Good to go long on breakout at 200-DMA, SL: 0.7565, TP: 0.7630/ 0.7685
FxWirePro Currency Strength Index: FxWirePro's Hourly CAD Spot Index was at 112.802 (Bullish), while Hourly CHF Spot Index was at -73.8906 (Neutral) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.


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