CAD/CHF potential downside move after the support breakout

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Updated: 21 September 2020

Hello traders! CAD/CHF topped out near the key psychological resistance at 0.7000. The price tested 0.7008 and went down, breaking below the 200 Exponential Moving Average as well as the uptrend trendline.

Then, since September 10, up until today price has been consolidating while trading within a very narrow range. Although, throughout the consolidation phase, the price has established a strong resistance at 0.6920. This level corresponds to the trendline breakout point, not to mention that the 200 EMA was rejected several times.

Today there has been a MACD bearish crossover, which could be the signal of the beginning of the downtrend continuation. As long as daily closing prices resin below 0.6920 resistance. CAD/CHF is expected to test 0.6780 support, which is confirmed by 88.6% and 527.2% Fibonacci retracement levels as per the chart below.

Bias: Strongly bearish while below 0.6920

Potential Resistance Zone: 0.6900-0.6920

Potential Targets: 0.6780

Have a profitable trading!