CAD/CHF 1H Chart: Triangle spotted on chart

Source: Dukascopy Bank SA

Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3) Sell Neutral Sell
Alligator (13; 8; 5) Neutral Buy Buy
SAR (0.02; 0.2) Buy Sell Buy
Aggregate

CAD/CHF has been trading in a triangle-like formation since early May. Its upper boundary is formed by a trend-like, while the bottom one—is a one-month support/resistance level at 0.7720. 

The strong hourly plunge on May 18 resulted in a breakout of the dominant three-month channel at 0.7790. The Loonie has since returned to its lower boundary and the 200-hour SMA at 0.7810. 

It seems that the pair might actually push even higher during the following trading session up to the aforementioned trend-line near 0.7820. In addition, the positioning of technical indicators also demonstrate that there is still some short-term potential to the upside. 

By and large, the rate is expected to remain within the triangle, thus reversing near 0.7820 and initiating a new medium-term decline down to 0.7650.

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