Chart of the Day CADCHF
CADCHF Potential Reversal Zone - Probable Price Path
CAD: The Canadian Dollar has been boosted in recent sessions on the recovery in global sentiment, rebound in the price of oil and the passage of PM Trudeau's massive spending plan. All of this has offset a disappointing Canada Ivey PMI read. Key standouts on today’s calendar include Canada housing starts, a BoC Macklem speech, US initial jobless claims, and a Fed Barkin speech.
CHF: The SNB remains uncomfortable with Franc appreciation and continues to remind the market it will need to be careful about any attempts at trying to force an appreciation in the currency. But the SNB will also need to be careful right now, as its strategy to weaken the Franc is facing headwinds from a less certain global outlook. Any signs of renewed risk liquidation in 2020, will likely invite a very large wave of demand for the Franc that will put the SNB in the more challenging position of needing to back up its talk with action, that ultimately, may not prove to be as effective as it once was, given where we're at in the monetary policy cycle.
From a technical and trading perspective, the CADCHF looks poised to break out of triangle resistance on its fourth attempt, a close above .6939 should warrant bullish exposure initially looking for a retest of .7000 enroute to an equality objective sighted at .7120. On the day only a closing breach of .6875 would negate the bullish thesis suggesting another false break which should open a retest of ascending trendline support sighted at .6825 before bulls attempt another basing platform.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!