CADCHF has moved south since November 2011. For almost two years, and more precisely since the memorable “Black Thursday,” when the drastic and unexpected collapse of the market caused by the decision of the Swiss National Bank (SNB) to cut interest rates and to abandon the rigid EURCHF exchange rate at 1.20 broke support 0.7850, market moves in consolidation.
It is worth noting, however, that last month market was overcoming the downtrend line, which could support potential gains and attempts to breakout from consolidation.
However, taking into account declines that have been taking place for two weeks, in near future we expect them to continue and re-test the bearish trend line.
Looking at the 4-hour chart we will see that first demand response we would expect could a bit earlier – already in the local (green) support zone.
Rejection of this zone could be a signal to new growth