Canadian Dollar versus Swiss Franc has been on our watch list since a couple of weeks noticing its behaviour in accordance to the pyschological levels developed by the market after providing a bearish breakout below 0.7370 in mid April and then July. This was a bearish correction of higher degree in daily time frame after the impulsive 5 wave pattern ending on 30th March. Initially the market did come above the 0.7370 level creating a double top kind of a structure and created stong support at the aforementioned price for around 12 weeks approx. The extended consolidation ended on 7th July with CADCHF once again breaking the important support line, diving towards our 61.8% and 50% fibb retracement levels. CADCHF was below the daily exponential moving averages 8,13,21 and exponential moving average 50 and 200 for the entire month of July and found bullish sentiments at 0.71830 - reverting the losses and currently standing at 0.73679.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

CADCHF is standing below ichimoku cloud lower surface in daily chart with our strong support turned resistance at top. Canadian Dollar versus Swiss Franc has also entered the over bought conditions in four hourly chart with relative strength index hovering above 70. This calls for a bearish correction to the pair in order to step out of the overbought conditions by retrieving from daily and weekly highs. According to the elliot wave thoery, CADCHF seems to have completed its impulsive bullish 5 wave structure in four hourly chart and will be heading for a bearish correction just like its relative strength index. A breakout above 0.73800 with a closing breaching the 0.74000 price action would indicate that the pair has again entered the bullish rally and will be heading for its highest highs in daily time frame. For now we dont intend on finding any such scenarios and will keep our stance towards favoring the bulls. 

CADCHF PREPARING GROUNDS FOR BEARISH RUN

Aug 11 2021