CADCHF has moved south since November 2011. For almost two years, since the “Black Thursday,” when the drastic and unexpected collapse of the market was caused by the decision of the Swiss National Bank (SNB) to cut interest rates and to abandon the rigid EUR/CHF exchange rate at 1.20, market moves in consolidation after breaking significant support at 0.7850.
Looking at weekly chart, we notice that in the week ending on July 14th, market has broken downward trend line.
Although last week we saw advantage of supply this line has not been tested from the top (as support). This fact did not hinder the demand and from the beginning of the week we are again seeing growth.
On H1 chart, we note that as a result of Monday’s growth market broke out today from consolidation that has been underway for exactly two weeks. As a result pair CADCHF was on highest levels since February 27th. If there is no supply reaction in near future that could negate the breakout, we could expect continuation of this trend.