CADCHF for long time is moving in a downward channel which as a result of dynamic growth in late November was broken. Currently we are in area of extremely important resistance at 0.7730, which in case of defeat could pave the way for further gain.
However, given that for more than a month there was no any deeper correction and the market still not tested the upper limit of the previous downward channel from the top (as support), in the near future we could expect appearance of bearish response and at least a soft downward correction.
But looking at the weekly chart we see that market breaking out from downward channel also overcame the line of downward trend running from November 2007, thereby changing potentially the attitude of the market in the longer term.
Even if in near future will be reaction of the supply side, than possible declines may prove to be only a correction. To fully confirm the change of attitude of the market and growth in longer term we would have to overcome the resistance level around 0.7850.
