CAD/CHF Daily Chart
The CAD/CHF pair has been relatively operating in a range the whole of 2012 following a cap next to 0.94. Previous to this, range, the souk has maintained a bullish run since a drop of about 0.7119 recognized in August 2011. But you should also put into account the fact that the souk is currently trading on top of 200-day simple moving average. Even though the last 0.94 resistance is yet to be broken, there are so many signs pointing to it.
- The on going averages seem to have an optimistic orientation with 200- period at the base with 100, 55, 21, and 8 showing an uptrend.
- Considering that lows have been showing an uptrend since Feb. 27 low around the 0.8935 level, it is clear that bears have more control this year.
CAD/CHF Weekly Chart
The CAD/CHF weekly table indicates a continuous decline in the market since 2008 when it experienced a high of about 1.25. The current rise in price since 2011 seems to be a price reversal against the bearish sway from 1.1142 to 0.7119. Here are some of the possible resistance levels in case the 0.94 level is broken.
- 200-wk SMA at 0.9550.
- 61.8 percent retracement appears at 0.96.
- There is a possibility of price drop at the 0.9880-0.99 region.
- Equality and the dropping channel price decline should serve as the main resistance area sooner than the situation becomes more promising on top of the dropping trend line.
Three major factors that determine whether the pair can break and rise above 0.94.3;
1) CAN GDP (this Friday)
2) US NFP (this Friday) – deprived US information can harm the CAD and optimistic US data can assist to boost the CAD
3) CAN employment report (next Friday).