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CADCHF Intraday Strategy
CADCHF was heavily sold in the Foreign Exchange (Forex) market following heavy selling that crude oil and general weakness in the commodity currencies.
CADCHF 4hr Chart
Please click on the chart to enlarge:
0.7288 is also the daily support that appear to have contained the weakness in the FX cross. Based on our technical models CADCHF is due for corrective gains but may be limited due to the Swiss National Bank (SNB) monetary policy meeting on Thursday. The SNB was active in the Forex market ahead of the ECB monetary policy meeting on concerns EURCHF will be heavily sold. As the Euro was not heavily sold we find it difficult to believe the SNB will take any actions in its monetary policy meeting. From past monetary policies where the SNB did not take any actions the Swiss Franc (CHF) enjoyed moderate gains.
The key resistance is highlighted on the 4hr chart (in black) and is the initial target of the corrective gains. If the price is unable to break above the resistance following a successful re-test it is another indication moderate selling is due, possibly as a result of the SNB meeting. If the resistance is taken out ahead of the SNB meeting, 0.7414 is the target of the reversal