CAD/CHF is about to hit a major support zone!
Can the pair bounce despite its uber-bearish downswing?
The daily chart may provide some clues:
CAD/CHF Daily Forex Chart by TradingView
As you can see, back in late September CAD/CHF got rejected at the .6825 area that also happened to line up with a key area of interest this year.
You know what else is shaping up as a major area of interest?
The .6480 level! Not only did CAD/CHF turn higher from the area back in May but it also served as a solid support zone from mid-July to late August.
Think CAD/CHF bulls will pounce again this time?
Not only is the pair back at the support zone that CAD bears haven’t defeated all year, but Stochastic is also telling us that CAD/CHF is already oversold in the daily time frame.
Buying at the first signs of a bounce could yield a good risk ratio especially if CAD/CHF ends up retesting its .6600 mid-range or .6825 range resistance areas.
Feel like CAD/CHF is headed for new 2023 lows instead?
You can also wait for a clear breakout below the range or consistently bearish candlesticks below the .6480 support if you’d rather trade CAD/CHF’s current bearish momentum.
Whichever bias you end up trading, make sure to check CAD/CHF’s average daily volatility so your positions don’t get stopped out before price action gets really interesting!