- CAD/CHF reversed brief dip below 0.74 handle to close above on Friday's trade.
- The pair is trading in a narrow range on the day, holds above 0.74 handle.
- Price has broken below major trendline support at 0.7445 and we see further weakness on charts.
- The pair is extending consolidation on the day, as rising trade war fears keep support for the haven franc.
- Technical indicators are biased lower and we see scope for test of 78.6% Fib at 0.7361.
- On the flipside, retrace above major trendline (support turned resistance) will see some upside.
- We see bearish invalidation on break above 100-DMA.
Support levels - 0.74, 0.7361 (78.6% Fib), 0.7335 (Feb 22, 23 low)
Resistance levels - 0.7458 (5-DMA), 0.75, 0.7558 (21-EMA)
Recommendation: Good to go short around 0.7440/50, SL: 0.75, TP: 0.74/ 0.7365/ 0.7335
FxWirePro Currency Strength Index: FxWirePro's Hourly CAD Spot Index was at 104.008 (Bullish), while Hourly CHF Spot Index was at 66.142 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
