Hello traders! It looks like CAD/CHF trend turned bearish after forming a bearish divergence on the RSI oscillator. Since that, price broke below the 50 EMA as well as the downtrend trendline, suggesting the beginning of a long term price decline.
Looking at the most recent price action, CAD/CHF has rejected the 50% Fibonacci retracement level for three consecutive times, with the last bounce occurred just today. It makes 0.6918 the key resistance price which is likely to decide the destiny of the CAD/CHF for the weeks to come.
The RSI uptrend trendline has been broken and currently, it is acting as the resistance. Overall, as long as the daily close will remain below 0.6920, CAD/CHF will continue trending downwards. The nearest downside target is located at 78.6% Fibs, which is 0.6853 level. Only if/when this support will be penetrated, pair is likely to confirm strong downtrend in the long run.
On the upside, as has been mentioned, the 0.6920 is a key resistance area. If there will be a daily close above this price, CAD/CHF consolidation phase should be initiated. In this scenario pair might go up, to re-test the 0.7000 psychological level.
Bias: Strongly bearish while below 0.6920
Potential Resistance Zone: 0.6900 – 0.9620
Potential Targets: 0.6853
Have a profitable trading!