FxWirePro: 5-DMA caps upside in CAD/CHF, bias lower, stay short

• CAD/CHF trades in an extremely narrow range, capped below 5-DMA.
   
• The pair is consolidating break below major trendline support at 0.7445, bias lower.
   
• We see further weakness on charts, scope for test of 78.6% Fib at 0.7361. 
   
• Continuing trade war fears keep support for the haven franc. President Donald Trump called for the EU and China to remove trade barriers and tariffs, or face the consequences.
   
• Technical indicators are biased lower. Momentum studies highly bearish with -ve DMI dominance.
   
• Violation at 78.6% Fib could see further weakness. Drag till 0.7252 (Mar 16 low) then likely.
   
• On the flipside, retrace above major trendline (support turned resistance) will see some upside. Bearish invalidation on break above 100-DMA. 

Support levels - 0.74, 0.7361 (78.6% Fib), 0.7335 (Feb 22, 23 low)

Resistance levels - 0.7444 (5-DMA), 0.75, 0.7545 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-CAD-CHF-consolidates-break-below-major-trendline-support-eyes-786-Fib-1386018) has hit TP1.

Recommendation: Hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly CAD Spot Index was at -93.0896 (Bearish), while Hourly CHF Spot Index was at 36.893 (Neutral) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.