- CAD/CHF struggled to close below 21-EMA at 0.7565 on Wednesday's trade.
- The pair is extending trade in an extremely narrow range on the day, with a day's high at 0.7588 and a low at 0.7579.
- Technical analysis show bearish bias for he pair. Recovery remains capped at 5-DMA.
- Price action was rejected at 200-DMA and cloud weighs on the upside.
- Stochs have rollover from overbought levels and biased lower. RSI remains flat around 50 levels.
- Decisive break below 21-EMA will see further weakness. Bullish reversal only on breakout at 200-DMA.
Support levels - 0.7567 (21-EMA), 0.7530 (July 12 low), 0.75, 0.7435 (trendline)
Resistance levels - 0.7590 (5-DMA), 0.7621 (200-DMA), 0.7686 (61.8% Fib)
Call update: We had recommended a short call in the pair (https://www.econotimes.com/FxWirePro-CAD-CHF-Trade-Idea-1404973).
Recommendation: Stay short for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly CAD Spot Index was at -27.366 (Neutral), while Hourly CHF Spot Index was at 101.469 (Bullish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
