CADCHF for more than two and a half years moves in horizontal trend (in consolidation) since the memorable “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 abandon the fixed EUR/CHF exchange rate.
Looking at weekly chart, we note that as a result of the bullish trend since the beginning of June this year, pair has once again reached the level of 0.7850 which is the upper limit of this consolidation.
On the daily chart, we note that these increases were largely supported by Bank of Canada’s Wednesday decision, which unexpectedly raised the key interest rate to 1.00%, which triggered a strong appreciation of the Canadian dollar.
Since then, the market is moving in a relatively narrow consolidation, whose upper limit is 0.7850, and the lower limit coincides with 38.2% of the Fibonacci correction from the last growth impulse. Leaving the bottom of this consolidation cean lead to permanent rejection of the 0.7850 level and opening the way to declines in a slightly wider horizon.
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