© Dukascopy Bank SA
Loonie has been depreciating against the Swiss Franc for almost a month, however, the price reached the resistance line of a channel down pattern, and in case of an upward breakout, higher prices can be expected. The penetration of this level is supported by aggregate technical indicators on a 4H chart, which are sending "buy" signals. At the same time, there are no strongly marked market sentiment– bearish (51%), therefore bulls may not be strong enough to push the pair higher. The fact that the Canadian Dollar is sold in 69% of all cases is adding to signs the downside movement will continue.
© Dukascopy Bank SA