CAD/CHF is still struggling to get out of the descending channel. After the SNB scrambled the 1.20 floor in EUR/CHF and unleashed swissy strength, the franc is still in consolidation mode against almost all currencies. The channel resistance has kept the price below for more than a year and as it can be seen on the picture 1., the pair is making lower highs and lower lows. Even if the pair breaks out, the combination of horizontal resistance and 100 WMA between 0.7760-0.7800 is likely to keep the pressure on the price.




Picture 1. CAD/CHF weekly channel


Monthly chart (picture2) is even more depressing for the Canadian bulls. The descending line has kept the price below since 2007 with the price getting rejected 5 times during that period. This monster resistance comes around 0.7750.

Picture 2. CAD/CHF monthly



I expect CAD to stay under pressure from falling Oil prices. With that being said, I struggle to see how this pair may break out and stay above, both the channel and the long-time descending line. I can see the pair consolidating around 0.7400.
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