CAD/CHF is trading in a bearish manner on the four-hour chart. The pair has been trending downward since early September and after a short-term consolidation between 0.72308 and 0.71851, sellers are attempting to resume the downtrend by attacking the range support at 0.71851. the narrowing Bollinger bands also exhibit a consolidation in the market, that demonstrates a condition called squeeze, signalling a probable new movement is going to emerge.
If the current bearish bias that Wednesday’s morning trade is witnessing persists, the price will likely break the 0.71851 hurdle. Such a move can put 0.71724 in the spotlight. A further decline below this level can result in settling the price around the 0.71565 mark, which is in line with the %161.8 Fibonacci projection from the last upswing that occurred on Tuesday. Suppose sellers clear this obstacle. In that case, the way will be opened towards the lower support levels at 0.71390 and 0.71106, respectively.
Otherwise, if buyers get back to the market, defending the 0.71851, the price may stay in the current range, attempting to reach the immediate resistance around the previous top of 0.72308, which lines up with the 50-EMA, in the upper side of the Bollinger bands.
Short-term momentum oscillators support a bearish sentiment. RSI is edging down in the selling region, suggesting bears are in charge. Momentum also keeps falling below the 100-threshold. Likewise, MACD bars are plunging into negative territory.
The content of this material and/or any information provided should in no way be construed, expressly or by implication, directly or indirectly, as advice, recommendation, or suggestion of an investment strategy in relation to a financial instrument and is not intended to provide a sufficient basis for making investment decisions in any way. Any information, views or opinions presented in this material have been obtained or derived from sources believed to be reliable, but Errante makes no warranty as to their accuracy or completeness. Errante accepts no liability for losses arising from the use of this data and information. The data and information contained herein are for background purposes only and make no claim to be complete or comprehensive.
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