Technical Analysis of CAD/CHF for April 05, 2016
CAD/CHF was range trading for the past month and only few days ago pair managed to get below the 0.7330 support level. This could signal that a downtrend is about to emerge.
The pair was also trading below the 200 Moving Average, then, broke below a descending channel and close below it. The Fibonacci, applied to the first corrective wave after the 0.7330 support, and a channel breakout showed potential downside targets.
Consider selling CAD/CHF either on a small pullbacks or on the breakout below S1 (0.7300). There are 3 targets, including S2, S3 and S4 (0.7125) being the final target. The stop loss should be just above R1 (0.7370)
Support: 0.7300, 0.7260, 0.7190, 0.7225
Resistance: 0.7330, 0.7370
The material has been provided by InstaForex Company - www.instaforex.com
