CADCHF Eyeing Key Level
CADCHF is sitting at an interesting level here. Following the breakout above the .7367 highs, price has stalled into a test of major resistance at the .7496 level and is now sitting in a block of consolidation between the two level. .7496 has been a major ceiling for the pair over the last 18 months yet, with price continuing to trade back up to test the level, it seems a break higher is likely coming.
The current formation can be viewed as a bull flag given the break above the .7367 highs and, with the retail market holding an almost 90% short position, there is plenty of room for a break higher near term. Bulls can look to trade a break of the .7496 highs targeting a run up to .7640 initially.
Keep An Eye On
Hawkish BOC expectations and higher oil prices are keeping CAD supported here. With the BOC having hiked by .5% this week, and signalling further hikes to come, there is clear divergence between itself and the SNB, which continues to maintain an easing position. With this in mind, there Is plenty of room for CADCHF to rally further, particularly if oil prices remain supported near term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.