- CAD/CHF grinds higher for 5th straight week, bias bullish.
- Upside in the pair has paused at 200-DMA resistance at 0.7646. Decisive breakout above will see further upside.
- Technical analysis supports further upside in the pair. Price has broken above 100-DMA.
- Momentum studies highly bullish. RSI shows strength at 70 levels and we see +ve DMI dominance with ADX support.
- On weekly charts, MACD now shows a bullish crossover on signal line and Stochs are biased higher.
- Breakout at 200-DMA will see test of 78.6% Fib at 0.7765. While rejection at 200-DMA will see weakness till 20-DMA.
Support levels - 0.7636 (5-DMA), 0.76, 0.7557 (100-DMA), 0.7487 (38.2% Fib)
Resistance levels - 0.77, 0.7726 (Aug 22 high), 0.7765 (78.6% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-CAD-CHF-Trade-Idea-1247787) has hit TP1/2.
Recommendation: Watch out for break above 200-DMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly CAD Spot Index was at 12.3613 (Neutral), while Hourly CHF Spot Index was at -36.1568 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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