The Swiss National Bank (SNB) is up today!
Word around is that Switzerland’s central bank could keep its policies steady for another month.
If the event sparks increased volatility among Swiss franc pairs, then you’ll want to take a closer look at CAD/CHF’s countertrend opportunity:
CAD/CHF 4-hour Forex Chart by TradingView
The oil-related Canadian dollar is holding its ground against the Swiss franc, thanks to a combo of increased risk appetite, higher crude oil prices, and U.S. dollar strength that limited the Swiss franc’s demand.
Will this week’s SNB policy decision restart CHF’s upswings? Or will it further weigh on the safe-haven currency?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Swiss franc and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
CAD/CHF has been stuck in a downtrend since August, but the pair is flashing long wicks as it clings to September’s lows.
The .5720 area is doing some heavy lifting here, lining up with the S1 Pivot Point and the bottom of a descending channel on the 4-hour chart.
If buyers keep defending the area, bullish candles above the S1 Pivot Point could spark demand and send the pair toward key inflection points like the Pivot line at .5750, the 100 SMA, or even the top of the channel.
On the other hand, we could just be seeing a pause in CAD/CHF’s downtrend. A clean break below the current consolidation and a fresh monthly low may open the door to .5700 or even a full downside breakout under the channel.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
