Patterns: CAD/CHF, CHF/JPY
|CAD/CHF 4H Chart: Breakout could occur
The Canadian Dollar has declined by 108 pips or 1.53% against the Swiss Franc since last week's trading sessions. The currency pair tested the 100– period simple moving average at 0.6939 on November 17.
Currently, the exchange rate is trading near the lower boundary of a descending channel pattern at 0.6978 and could be set for a breakout.
If the breakout occurs, a decline towards the weekly support level at 0.6865 could be expected during the following trading sessions.
However, if the channel pattern holds, bullish traders might target the 0.7050 area within next week's trading sessions.
CHF/JPY 4H Chart: Could continue to decline
The Swiss Franc has declined by 181 pips or 1.56% against the Japanese Yen since last week's trading sessions. The currency pair breached the 50-, 100– and 200– period SMAs this week.
All things being equal, the exchange rate could continue to edge lower in a descending channel pattern during the following trading sessions. The potential target for bears would be at the 113.00 level.
However, the weekly support level at 113.44 could provide support for the currency exchange rate in the shorter term.
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