Trade of the Week: Bank of Canada Rate Hike May Boost Canadian Dollar

Notice how the CAD has a year-to-date climb versus most of its G10 peers, except for safe haven currencies such as the Japanese Yen and the Swiss Franc.

Go further back to the end of 2020 and you’ll also find that the CAD is the sole G10 currency that has advanced against the greenback since.

Why has CAD been outperforming?

1. Oil’s surge

Canada is the world’s fourth-largest oil producer and has the world’s third-largest crude reserves. The oil and gas sector accounts for about 5% of the economy, with the commodity being Canada’s largest export.

In short, Canada is reliant on oil. Hence, oil prices have a major impact on the loonie.

Considering oil’s rip-roaring 13% surge so far in 2022 (adding to last year’s 50% climb) that has helped boost CAD’s allure

2. Higher yields

Yields are the calculation of earnings from an investment. And Canadian bonds are now offering higher yields than their counterparts in the US, Europe, and Japan. These higher yields suggest that investors would be more inclined to park their money in Canadian assets over those in other developed markets.

Such heightened demand also implies greater demand for the Canadian dollar, which in turn is offering support for the loonie.

3. Hawkish BoC outlook

Markets are giving a 72% chance that the Bank of Canada will raise interest rates on January 27th, which would mark its first since the pandemic. Inflation in December hit 4.8% which was its highest reading since 1991. Raising interest rates is a primary way that a central bank can help subdue consumer prices.

Note that markets are also forecasting six rate hikes by the BoC before 2022 is over. That is more than the Fed and the Bank of England, who are both expected to hike 4 times respectively this year.

Overall, such ‘hawkish’ expectations have been fueling CAD’s strength in recent months, while also offering the rationale for those higher yields mentioned earlier.

However, not everyone agrees that a BoC hike this week is a foregone conclusion.

Two-thirds of economists surveyed by Bloomberg think that the Bank of Canada’s Overnight Lending Rate will remain at 0.25% this month. In fact, last Tuesday, markets had priced in an 82% chance of a January rate hike, only to pare back such bets down to 72% at the time of writing (hence the recent recovery in USDCAD).

USD/CAD daily chart

In short, the BoC has to deliver on a hike this week to give USDCAD a chance of revisiting its 200-day simple moving average (SMA) as a key support level. That support region is also strengthened by the presence of the currency pair’s 50% Fibonacci retracement level from its June-December 2021 advance.

However, if the BoC disappoints some segments of the markets and keeps rates lower for a while more, that could see USDCAD testing its 50-day SMA for immediate resistance, with stronger resistance set to arrive around the 23.6% retracement line.

BoC vs. ECB to keep EURCAD’s downtrend intact

Compared against the likes of the European Central Bank, which remains far from raising its own interest rates, the BoC appears to be much further ahead in the path towards restoring policy settings to pre-pandemic levels

This diverging outlook has been a key driver of EURCAD’s downtrend over the course of 2021, aided further by the stellar gains in oil prices.

The unwinding of hawkish BoC bets has translated into a slight pullback for EURCAD in recent sessions, even as the pair recovers from oversold conditions after having broken below its lower Bollinger band and touching its lowest levels since April 2017.

Still, EURCAD is not expected to see significant gains in the weeks and months ahead, barring a dovish surprise out of the Bank of Canada this week.

EUR/CAD daily chart

As long as hawkish BoC expectations remain intact, depending on the mid-week meeting’s outcome, and with oil prices set to explore further upside, then the Canadian dollar could still see more gains against most of its G10 peers in the near future.

By Han Tan Chief Market Analyst at Exinity Group

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Dollar Drops Before Christmas

Indices climbed higher after another V-shaped reversal.

The dollar Index bounced off the lower line of the pennant. Sideways movement continues but the end is near.

The GBPUSD bounced nicely from the 38,2% Fibonacci. Finally!

The same goes for the NZDUSD. The triple bottom formation looks complete.

The USDCHF completely lost momentum. Watching paint dry is actually more interesting than trading the USDCHF.

The EURNZD continued the reversal to the downside after the false breakout pattern from the beginning of the week.

The CHFJPY finally escaped from the weeks-long sideways trend. The breakout is to the upside.

The CADCHF reversed and created a false breakout pattern and is ready for a further rise.

Silver defended its 22 USD level. A great success butt there’s still a lot of work for buyers to do.

Dollar Continues Moving Sideways

DAX performs a V-shaped reversal but the optimism stops today on a crucial resistance; 15440 points.

Brent Oil bounces off a crucial dynamic support.

Dollar Index extends the pennant formation awaiting the breakout.

EURUSD enters the rectangle pattern continuing the sideways movement.

After choppy movements, GBPUSD finds itself still trading above the 38,2% Fibonacci.

The same with NZDUSD, which is doing everything to stay above the 38,2% Fibo.

USDCHF continues trading inside of the symmetric triangle pattern.

EURNZD jumps above important horizontal resistance and today, testing it as a support.

CADCHF breaks an absolutely crucial long-term support. That’s a strong sell!

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD and NZD/USD Rise From the Death!

USD loses traction and allows other currencies to catch some breath. On many pairs, this initial reversal is happening in very interesting places.

GBPUSD is bouncing from the lower line of the flag and the 38,2% Fibonacci with a beautiful inverse head and shoulders pattern. The neckline is already broken, so the buy signal is ON.

A similar situation can be seen on the NZDUSD but here, instead of the iH&S, we have the triple bottom formation.

EURUSD is bouncing from the lower line of the pennant.

GBPJPY defends a crucial horizontal support and aims higher.

USDCHF still waits for the breakout from the symmetric triangle pattern. Currently we are in the middle.

AUDCHF aims higher after the price makes a V-shaped reversal after touching the lower line of the flag.

CHFJPY continues another week inside of the rectangle, between the 23,6% and 38,2% Fibonacci.

CADCHF is attacking a long-term horizontal support. A breakout can bring us a proper sell signal.

For a look at all of today’s economic events, check out our economic calendar.

Waiting for the Bigger Movement on the USD

DAX ends the flag and tries to aim higher.

Nasdaq is about to test an absolutely crucial horizontal resistance. A bullish breakout will mean a proper buy signal.

Dollar Index is inside of a pennant, waiting for a breakout.

The same with the EURUSD.

GBPUSD bounces from the lower line of the flag and 38,2% Fibonacci but the momentum could have been higher.

USDCHF is still inside of the long-term symmetric triangle, waiting for the breakout like the Dollar Index.

CHFJPY is still locked between two important Fibonacci retracements. The rectangle continues.

CADCHF is also inside of the lock-term triangle. This week may result in a test of its lower line.

For a look at all of today’s economic events, check out our economic calendar.

Dollar’s Weakness is Back

Gold creates a double bottom formation with two hammers on a daily chart.

Nasdaq and DAX bounce from the upper line of a correction pattern.

Dollar index cancels the Inverse Head and Shoulders and drops lower.

EURUSD starts bullish correction.

AUDJPY is heading higher after testing the neckline of a giant iH&S pattern.

USDCHF bounces from the neckline and drops lower with a proper sell signal.

CADCHF goes lower after the false bullish breakout from the symmetric triangle.

For a look at all of today’s economic events, check out our economic calendar.

Dollar Has to Make one More Small Step for a Major Buy Signal

Indices continue the buying bonanza.

Commodities fall down, mostly due to the stronger USD.

Dollar Index creates an iH&S pattern.

EURUSD breaks the neckline of the H&S formation.

AUDUSD bounces from the upper line of the triangle.

USDCHF with almost identical setup as the Dollar Index.

CADCHF breaks the upper line of the triangle and aims higher.

For a look at all of today’s economic events, check out our economic calendar.

American Dollar Close to a Major Buy Signal

GBPUSD reaches and bounces from a crucial horizontal resistance.

USDCHF creates a right shoulder of the iH&S pattern.

NZDUSD, on the other hand, creates a right shoulder of the H&S pattern; we are close to the neckline.

NZDCAD is in an even better spot as here the price is breaking the neckline as we speak.

CADCHF locked inside of a big symmetric triangle. Waiting for the breakout.

For a look at all of today’s economic events, check out our economic calendar.

Indices and USD Climb Higher

DAX aims higher after the breakout of the upper line of the flag

CAC is getting closer to the upper line of the triangle

SP500 avoids the drop after the bearish head and shoulders pattern

Gold drops and aims long-term up trendline

EUR/USD is about to test a combination of crucial supports

AUD/NZD makes contact with important horizontal level

CAD/CHF breaks the upper line of the ascending triangle pattern and aims higher

AUD/JPY with a very similar situation

Triangle Formation Will Show You the Direction

In today’s trading sniper I would like to show you the power of triangle patterns and I will do it using rather exotic currency pairs. Triangles, especially ascending and descending ones are super powerful formations, which can be a reliable and trustworthy friend of every technical trader.

First instrument is the CADCHF, where we have a beautiful ascending triangle pattern. This is promoting a breakout to the upside and it is happening as we speak. Since today, the price couldn’t break the 0.693 resistance. The first day of September brings us an attack and in consequence a breakout which leads to a mid-term buy signal.

An example how effective an ascending triangle can be is seen on the AUDJPY chart, where the ascending triangle has been present since June. Last week, the price finally broke the 76.6 resistance, which brought us a legitimate buy signal. Sentiment here is definitely positive.

Triangles can work both ways, the two previous examples were of ascending triangles with a horizontal resistance and now I will show you the descending version of this pattern – with a horizontal support. It can be spotted on the EURNOK, where the price is going lower since the end of March. A recent breakout of the lower line of the triangle gives us a proper sell signal. Sentiment here is negative.

For a look at all of today’s economic events, check out our economic calendar.

Great Setups with Canadian Dollar

Tuesday brings us significant weakness of the Canadian Dollar, which is quite surprising as this movement has no clear fundamental background. Usually technical analysis cooperates with fundamentals but this time, the movement is almost entirely technical, at least from my point of view.

Let’s start with the EURCAD, where the common currency is moving higher, testing an absolutely crucial horizontal resistance level. I mentioned this resistance in one of my previous short videos. The 1.544 level on the EURCAD was an upper border of the sideways trend, present here since April. The price closing the day above the yellow line will be a super strong, long-term buy signal.

Next up is the CADCHF, which we also mentioned recently. The price here is in a full pessimistic mode after the bearish breakout from the flag and bearish breakout from the descending triangle pattern. The CADCHF closing the day below the lower line of the triangle will bring us a proper sell signal.

Lastly, I will mention the USDCAD, which was about to create the right shoulder of the head and shoulders pattern but the weakness of the CAD delayed those plans. Currently, the right shoulder is being transferred into a small inverse head and shoulder with the price testing the neckline as we speak. The price closing above the 1.362 level, can give us a 90-pips-buy-signal.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500, DAX, CAD/CHF Technical Analysis: Triangle Favors the Sellers

In our analysis on Friday we mentioned an interesting symmetric triangle pattern that emerged on the charts of both the DAX and the SP500. Back then, we were inside of those patterns, waiting for a breakout, which in theory was about to show us a proper direction. The breakouts did happen and, in both cases, were to the downside, which is rather negative information for stock traders.

Let’s start with the DAX, which indeed broke the lower line of the tringle on Friday but it did not cause a huge reversal on Monday. Actually, we are starting the new week positively and the price is trying to move a little higher however, I wouldn’t get too optimistic. From a technical point of view this is no more than a broken support being tested as a closest resistance. As long as the price stays below the resistance, sentiment is negative. Only a comeback to the inside of the triangle would be a strong buy signal.

The same thing is happening on the SP500 but let’s say that buyers are less enthusiastic about this rise. Well, maybe it’s because Americans are still asleep. Nevertheless, as long as the price stays below the lower line of the triangle, sentiment is negative.

About the triangle, I would like to show you the CADCHF pair. On the pair’s chart you can see how reliable the triangles are. In February, we had a breakout to the downside, followed by a huge slide. Then a correction (flag), which ended on two important Fibonacci resistances. In the middle of June, the price broke the lower line of the flag, which reopened a sell signal for us, that sell signal had originated when breaking from the triangle mentioned above. Sentiment here is negative.

For a look at all of today’s economic events, check out our economic calendar.

Three long-term Forex occasions. EURJPY, AUDJPY and CADCHF

Traders are slowly getting bored with the Coronavirus. In financial media, this topic is mentioned less frequently and slowly, the attention of the market participants is being shifted towards the other information. This allowed to perform a bullish correction on the indices and a bearish one on safe heavens. Today, we will show you long-term situation on the three currency pairs, where we could spot interesting trading opportunities.

First one is the EURJPY, where the recent pursuit to safe heavens increased the appetite for Yen and triggered a negative sentiment. It all started with the bounce from the 122.8 and the upper line of the wedge. Wedge is a trend continuation pattern, so it was naturally promoting the breakout to the downside. It happened on the 24th of February and after that, the price created a small rectangle. This rectangle is promoting a further slide and this is our current outlook on this instrument.

Similar setup can be found on the AUDJPY, where the price also bounced from the horizontal resistance and later broke the lower line of the correction pattern. In this case, it was a flag. What is different is the price movement after the breakout. On AUDJPY the price dropped like a rock, without a pause like on the EURJPY. Well, Australian Dollar is simply much weaker right now. Today, the price tries to initiate the correction but we are not convinced about the durability of this movement.

Last week was absolutely crucial for the CADCHF and you need to look on the weekly chart to understand why. After few weeks of a decline, the price eventually broke the lower line of the massive symmetric triangle pattern. In theory, that can start a new long-term down trend on this instrument. As long as we stay below the triangle, the sentiment remains negative.

Technical Checks For USDCAD, GBP, JPY & CHF: 30.01.2019

USD/CAD

Following its failure to surpass the 1.3370-75 resistance-region, the USDCAD again aims to test the two-month old support-line of 1.3200. Should the pair slips beneath the 1.3200 mark, the 1.3160 and the 1.3125 are likely following numbers to please sellers before flashing 1.3100 on the chart. On the upside, the 1.3280 can limit the pair’s immediate upside prior to highlighting the 1.3370-75 area. In case prices rally beyond 1.3375, the 1.3425 and the 1.3445 seem buffers during its rise to 1.3485-90 horizontal-resistance.

GBP/CAD

GBPCAD’s another reversal from 1.7475-90 resistance-zone signal brighter chances of its pullback to the 38.2% Fibonacci retracement level of 1.7285, breaking which 1.7170 and the 200-day SMA level of 1.7125 can grab the limelight. Given the pair’s refrain to respect the 1.7125, the 1.7060 and the 1.7000 may flash on the Bears’ radar. If at all the pair registers a daily closing past-1.7490 then its surge to 1.7580 and to the 1.7665-70 can’t be denied. During the pair’s sustained advances above 1.7670, the 1.7760 and the 1.7800 may attract market attention.

CAD/JPY

Even if short-term ascending trend-channel portrays the CADJPY strength, the pair needs to overcome the 82.90 horizontal-resistance in order to accelerate its up moves to the 83.40 resistance, including channel’s upper-line. However, the 83.70-80 region and the 84.25 could confine the pair’s north-run past-83.40. Meanwhile, the 82.20 and the channel-support of 82.00 might limit the pair’s adjacent declines, breaking which 81.30 and the 81.00 could come forward as supports. Should the pair continue trading southwards under 81.00, it can target the 80.60 and the 80.00 rest-points.

CAD/CHF

Observing a month-long ascending trend-line, the CADCHF now runs towards 200-day SMA level of 0.7550 ahead of looking at the 0.7580 and a bit broader resistance-line of 0.7600. Assuming the pair’s successful break of 0.7600, the 0.7680 and the 0.7720 may become Bulls’ favorites. Alternatively, a daily closing beneath the 0.7470 support-line highlights the importance of 50-day SMA level of 0.7420 and the 0.7370 levels. Additionally, the 0.7335 and the 0.7300 may appear as quote if the 0.7370 fall short of restricting the pair’s downside.

Technical Overview USD, EUR, AUD & CAD: 24.01.2019

USD/CHF

USDCHF’s pullback from 0.9935 can’t be considered as a sign of its strength unless the pair clears 1.0005-10 horizontal-region on a daily closing basis, which in-turn highlights the importance of 50-day SMA level of 0.9920 and 0.9900, including 200-day SMA as immediate supports. However, pair’s declines past-0.9900 might not hesitate recalling the 0.9860 and the 0.9800 on chart. In case prices rally beyond 1.0010, the 1.0040 and the 1.0085 could quickly appear as quote. Additionally, pair’s successful rise above 1.0085 can flash 1.0130 on buyers’ radar.

EUR/CHF

Unlike USDCHF, the EURCHF bounces off the near-term support-line, at 1.1270 now, which in-turn highlights the importance of 1.1315 and the 1.1355-60 resistance-region. Given the pair’s sustained rally after 1.1360, the 1.1390, the 1.1405 and the 1.1435 are likely consecutive resistances to gain market attention. Meanwhile, break of 1.1270 could trigger the pair’s dip to 1.1240 and then to 1.1210 whereas the 1.1190 and the 1.1180 might entertain sellers then after.

AUD/CHF

Failure to clearly cross the 50-day SMA seem dragging the AUDCHF to 0.7030 support, breaking which 0.6960 and the 0.6930 can offer intermediate halts during its drop to 0.6880-70 area. If at all the pair keep trading southwards under 0.6870, the early-month low of 0.6675 may become Bears’ favorite. Alternatively, 50-day SMA level of 0.7130 may restrict the pair’s adjacent rise prior to escalating its recovery to 0.7190 and the 200-day SMA level of 0.7240. Though, eight-month old resistance-line, at 0.7325, could challenge the Bulls past-0.7240, if not then 0.7400 might please them.

CAD/CHF

CADCHF still follows the “Rising Wedge” break indicating the pair’s slump to 0.7340-45 support-zone but 0.7415 & 0.7375 can act as buffers. Should prices slid below 0.7340, the 0.7300, the 0.7245 and the 0.7175 may be aimed if holding short positions. On the upside, 0.7490 and the 0.7515 could confine the pair’s immediate rise. Given the pair’s ability to surpass the 0.7515 barrier, the 0.7550 and the 0.7585 may lure the optimists.

Technical Update For USD/CHF, EUR/CHF, CHF/JPY & CAD/CHF: 05.12.2018

USD/CHF

With nearly 100-pip range between 1.0010-05 and 0.9920-15 aptly limiting the USDCHF moves, the pair is presently expected to revisit the 0.9950 rest-point ahead of testing the 0.9915 range-support for one more time. However, pair’s drop beneath the 0.9915 can quickly fetch it to 0.9885 and the 0.9860 marks ahead of highlighting the 0.9845 as a support. Meanwhile, an upside clearance of 1.0010 could propel the quote to 1.0050 and then to the 1.0080 resistances whereas pair’s successful trading beyond 1.0080 enables it to aim for 1.0100 and the 1.0130 numbers to north.

EUR/CHF

Failure to surpass a month-long descending trend-line again drags the EURCHF to 1.1300-1.1295 support-zone, which if broken may further weaken it towards 1.1270 & 1.1260. Though, sellers’ refrain to respect the 1.1260 might not hesitate flashing 61.8% FE level of 1.1225 on the chart. Alternatively, aforementioned TL can keep restricting the pair’s near-term advances at 1.1345, breaking which the 1.1360, the 1.1400 and another resistance-line around 1.1415 may play their roles of resistances. Given the pair’s ability to cross 1.1415 barrier, it can then rise to 1.1435 & 1.1470 figures.

CHF/JPY

CHFJPY’s bounce off the 113.00-112.95 rest-region can help it target the 113.50 and the 113.75 resistances but the 113.95-114.00 may challenge buyers afterwards. Assuming the pair’s sustained rally above 114.00, the 114.20, the 114.40 and the 61.8% FE level of 114.60 could entertain Bulls. If at all prices slide below 112.95, an ascending support-line stretched since late-October might confine additional downturn at 112.70, if not then 112.40 & 112.10 could become Bears’ favorites. Moreover, pair’s extended declines past-112.10 opens the door for its plunge to 111.85 & 111.50.

CAD/CHF

Even if 0.7580-85 acts as a strong resistance-area for the CADCHF, pair’s downside may find it hard to last longer than 0.7470-65. In case the quote dips beneath 0.7465, the 0.7440, the 0.7415 and the 0.7395 can appear on pessimists radars. On the contrary, 0.7555 may cap the pair’s immediate recovery before diverting market attention to 0.7580-85. Should the pair crosses 0.7585 hurdle, the 0.7625 and the 0.7645 are likely following numbers to grab limelight.

EURUSD tests the broken support as a resistance. Potentially huge movement on the CADCHF. Correction on Oil?

EURUSD is currently testing the broken 1.13 psychological support as a closest resistance. This movement is quite typical for the forex market and is a normal type of a price action. The first contact with the resistance resulted with a bounce but it looks like buyers will try one more time. The general sentiment remains negative.

CADCHF is in a small triangle inside of a bigger one. So we are in the worst place to trade – middle of the giant sideways trend. We are in a bad place now but we can be in an awesome place soon. The breakout of the lower line of the smaller triangle will give us a proper sell signal. We are very close to see this.

WTI Oil, just wow. The price dropped like a rock. Now we are on the last important support. This is the 61.8% Fibonacci and the resistance from the end of 2016 and the beginning of 2017. The sentiment is negative but we should get at least a small bounce there, normal taking profit action, nothing serious.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

Technical Outlook For USD/CHF, EUR/CHF, AUD/CHF & CAD/CHF: 04.10.2018

USD/CHF

Break of three-month old descending trend-line, also encompassing 100-day SMA, signal brighter chances for the USDCHF’s further upside towards 0.9945-50 multiple resistance area. However, a bit broader downward slanting TL, at 1.0000 psychological magnet, can confine the pair’s advances past-0.9950, if not then 1.0040 & 1.0070 may gain traders’ attention. In case the quote continue rising beyond 1.0070, the 1.0100 & 1.0170 could entertain the Bulls. Alternatively, the 0.9865-55 resistance-turned-support region might become important support if the pair take a U-turn from present levels, breaking which 0.9820 & 0.9790-80 seem crucial to observe. Assuming the pair’s extended downturn below 0.9780, the 200-day SMA level of 0.9730 & 0.9700 round-figure could flash in the Bears’ radar to target.

EUR/CHF

Alike USDCHF, the EURCHF also cleared immediate resistance-line and may rise in direction to few more north-side barriers, namely the 1.1450 and the 100-day SMA level of 1.1480. Given the pair’s ability to close above 1.1480, the 1.1560 & 200-day SMA level of 1.1610 might play their roles. Meanwhile, there are multiple supports between the 1.1325 and 1.1315, which if broken could drag prices to 1.1220 & 1.1180 levels. Should there be additional weakness on the pair’s part beneath 1.1180, the 61.8% FE level of 1.1100 might become sellers’ favorite.

AUD/CHF

Failure to surpass 50-day SMA portrayed the AUDCHF’s weakness that currently fetches it to 0.6980 and then to the 0.6950 supports. If the pair keep trading southwards below 0.6950, the 0.6900 and the 0.6870 can offer intermediate halts during its plunge to 61.8% FE level of 0.6765. On contrary, the 0.7065 and the 50-day SMA level of 0.7125 are likely immediate resistances that the pair needs to surpass in order to justify its short-term strength. Though, the 0.7200 becomes the only number that can please buyers above 0.7125 as four-month old descending TL, at 0.7240, might disappoint optimists afterwards.

CAD/CHF

With the 0.7705-15 horizontal-resistance still unbroken, not to forget about overbought RSI, the CADCHF is expected to re-test the 0.7670, the 0.7625 and the 0.7600 rest-points but 100-day & 200-day SMA confluence, around 0.7550-60, could limit its following declines. In case the pair refrains to respect the 0.7550, the 0.7500 and the 0.7425 may mark their presence on the chart. Given the pair’s ability to close beyond 0.7715, its rise to 0.7740 & 0.7770 can become imminent whereas a year-long resistance-line, at 0.7810, may restrict the advances then after. If at all the quote rallies above 0.7810, the 0.7865, the 0.7910 & 0.7960 are likely consecutive resistances to grab limelight.

Important CHF Pairs’ Technical Update: 19.09.2018

USD/CHF

A month old descending trend-line, at 0.9685, is likely to challenge the USDCHF’s short-covering moves from 0.9600, if not then the pair’s rise to 0.9710 and the 200-day SMA level of 0.9740 seem imminent. However, the 0.9780-90 area could restrict the pair’s upside past-0.9740, failing to which might propel prices to 0.9850-55 and the 0.9900 resistance-levels. Meanwhile, the 0.9600 and a downward slanting support-line, at 0.9580 now, can limit the quote’s immediate declines. In case the pair refrains to respect 0.9580 mark, the 0.9560, the 0.9520 and the 0.9430 are expected following supports to observe.

EUR/CHF

EURCHF is also heading towards the five-week long resistance-line mark of 1.1315, which if broken could escalate the pair’s recovery to 1.1360 and the 1.1400 numbers to north whereas 1.1415 and the 1.1455 might question the buyers’ strength afterwards. Assuming the pair’s successful trading beyond 1.1455, the 1.1500 and the 1.1555-60 may gain market attention. If the aforementioned TL pushes the pair downwards, the 1.1260 and the 1.1220 can come-back on the chart. Also, pair’s extended south-run below 1.1220 may make the 1.1180 and the 61.8% FE level of 1.1110 as sellers’ favorites.

GBP/CHF

Unlike previous two CHF pairs, the GBPCHF has one more barrier, namely the 50-day SMA level of 1.2800, to surpass before confronting the decisive trend-line, viz.1.2840. If at all the pair manage to clear the 1.2840 hurdle on a daily closing basis, the 1.2900, the 1.2980 and the 1.3000 may offer intermediate halts during its rise to 200-day SMA level of 1.3025. Alternatively, the 1.2600 and the 1.2550 cab be considered as adjacent rests if the pair takes U-turn from present levels, breaking which 1.2470-60 horizontal-area comes into play. Should Bears continue ruling momentum beneath 1.2460, the 1.2350, the 1.2265 and the 1.2215 may flash in their radars to target.

CAD/CHF

Break of nearby TL can’t be taken as a sign of CADCHF’s strength as another resistance-line, at 0.7500, and the 0.7515-20 zone, are still standing tall to threaten the Bulls. Given the prices keep advancing above 0.7520, the 0.7565, the 0.7585 and the 0.7600 can be aimed if holding long position. On the downside, the 0.7435, the 0.7400 and an ascending support-line, around 0.7375, could curb the quote’s immediate declines. Though, pair’s drop below 0.7375 has to conquer recent low near 0.7310 in order to test the 61.8% FE level of 0.7280.

Technical Overview of Important CAD Pairs: 12.09.2018

USD/CAD

Following its inability to sustain the U-turn from 100-day SMA, USDCAD re-tests the same SMA figure of 1.3040, breaking which 1.3000 and 1.2960 can offer intermediate halts during the pair’s drop to 1.2925 trend-line number. Should CAD optimists refrain to respect the 1.2925 mark, the quote could visit 200-day SMA level of 1.2860 and the 1.2800 rest-points. On the upside, 50-day SMA level of 1.3090 and 1.3110 may entertain short-term buyers before challenging them with 1.3180 resistance. Moreover, pair’s successful trading above 1.3180 might witness 1.3220 and the 1.3260-70 as strong barriers to north.

GBP/CAD

Not only reversal from 1.7160-70 but dip beneath the short-term ascending trend-line also highlights the importance of 1.6965-55 support-zone for GBPCAD traders. Given the pair continue declining past-1.6955, the 1.6840 and the 1.6750 might try disappointing the Bears, if not then 1.6660 and the 1.6590 could gain market attention. In case the pair witnesses short-covering from present levels, the 1.7090 is likely a buffer before shifting investors’ eyes back to 1.7160-70 area. Assuming that pair’s rally beyond 1.7160-70, the 1.7230 and the 1.7290-1.7300 can appear in the Bulls’ radar to target.

CAD/JPY

CADJPY again confronts the 200-day SMA level of 85.40, which if broken on a daily closing basis could propel prices to the 86.00 and to the 86.50 trend-line. If the quote keep marching north above 86.50, the 86.80 and the 87.10 might be aimed while holding long positions. Alternatively, 100-day SMA level of 84.80 may serve as nearby support for the pair if it gets defeated by the said SMA but the 83.80 and an upward slanting TL, at 83.50, could threaten the pessimists then after. It should also be noted that the pair’s D1 close below 83.50 can make it vulnerable enough to test 83.00 and the 82.40 levels.

CAD/CHF

While 0.7465 confines the CADCHF’s upside, the 0.7435, the 0.7410 and the 0.7395-90 may mark their presence on the chart. Though, pair’s extended south-run beneath 0.7390 opens the door for its fall to the 0.7355, the 0.7310 and then the 61.8% FE level of 0.7270. Meanwhile, pair’s rise above 0.7465 can have multiple resistances to break in order to justify its strength, namely 0.7480 TL, the 0.7515-20 horizontal-zone and the 0.7535 TL. Let’s say 0.7535 can’t restrict the pair’s advances then 0.7570 and the 0.7600 become crucial to watch.