CADCHF has moved south since November 2011. For almost two years, and more precisely from the memorable “Black Thursday,” when due to 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 EUR/CHF exchange rate at 1.20, pair broke key support at 0.7850 and moves in consolidation.
It is worth noting how precisely the bearish trend line is being tested, which for several months has stopped buyers from further growth. Currently, as a result of months of growth market has once again reached its vicinity and yesterday it was defeated.
Permanent overcoming this resistance could open the door to growth even to 0.7850 level, that is the upper limit of consolidation. It is only breaking the top that can change the general attitude of the market for a longer period of time.
Looking at H4 chart, it is also worth noting how precisely the market re-tested all the recently defeated levels of resistance. So it seems that in near future we would expect a re-test of the trend line and placed there support, which now very closely coincides with the 61.8% of the Fibonacci correction from the last growth impulse.
