CADCHF currency pair has been moving in consolidation for almost a week, from which today market broke out thru the bottom. It turns out that if there is no demand reaction in near future that could negate the break out, we could expect continuation of declines.

CADCHF H1

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Looking at H4 time frame, we notice that at the same time pair broke the bottom of a bullish channel. If the declines were to continue then we would expect to test again level 0.7627, which coincides with 61.8% of the Fibonacci correction from the last growth impulse.

CADCHF H4

Since last month, the market has fallen below downward trend line and, as we noted above, but the declines are significantly less dynamic and are more likely a correction than a new strong impulse so in the area of mentioned support we could expect reaction of demand. Rejection of this zone could open the way to further growth and if buyers would be able to overcome resistance at the 0.7850 level and break the top of January 2015 consolidation, we could expect a change in market sentiment in a considerably longer time horizon.

CADCHF Monthly
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