CAD/CHF: levels & targets
By Dima Chernovolov
• CAD/CHF reverses from major support level 0.7130
• Next buy target - 0.7600
CAD/CHF has been rising sharply from the start of this week – following the earlier powerful reversal from the support zone surrounding the major multi-year support level 0.7130 (which stopped and reversed the sharp downtrend in August of 2011, as you can see from the weekly CAD/CHF chart below). The upward reversal from this support zone created the strong Japanese candlestick reversal pattern – weekly Bullish Engulfing - standing far outside of the lower weekly Bollinger Band – which is a powerful bullish signal.
Given that the weekly RSI still remains in the oversold territory, CAD/CHF can be expected to rise further toward the next resistance level 0.7600. If the price breaks above 0.7600, CAD/CHF can be expected to rise further to the next strong resistance level 0.7800 (former multi-month support from 2014).