CADCHF – 4H Timeframe (H4) Technical & Fundamental Analysis
The Bank of Canada maintained its policy interest rate at 2.75% in April 2025, opting for caution amid global economic uncertainties.
Looking at the CADCHF 4-hour chart, The pair is exhibiting a potential shift in momentum after a prolonged selling phase. Price reached a significant low around 0.58400, where it formed a Triple Bottom pattern — a classic reversal signal. This technical structure was followed by a break above the minor resistance level at 0.59500, marking a clear Change of Character (CHOCH) that signals emerging bullish sentiment.
Currently, price is showing signs of accumulation within a liquidity zone. If a liquidity grab or stop-hunt occurs inside this area, it could set up for a breakout continuation. A potential area of interest lies around 0.59530 (possible breakout point), with risk managed below 0.59010 if liquidity forms. A longer-term target aligns with the next major resistance zone around 0.60690.
This setup reflects evolving market structure and buyer interest, supported by strengthening fundamentals favoring CAD.
Fundamentals Supporting CAD:
Easing U.S.–China Trade Tensions: Recent comments from U.S. Treasury Secretary Scott Bessent suggested a likely de-escalation of tariff disputes, lifting global risk sentiment and supporting commodity currencies like CAD.
Oil Price Recovery: Oil prices climbed nearly 2% to $64.31 per barrel, reinforcing CAD strength given Canada’s heavy reliance on energy exports.
BoC Policy Stability: The Bank of Canada held its benchmark rate at 2.75% in April 2025, citing external risks but expressing confidence in domestic resilience. This policy stance supports financial stability while remaining responsive to global developments.
Fundamentals Weakening CHF:
Dovish SNB Stance: The Swiss National Bank signaled no rush to tighten policy despite lingering inflation, which undermines CHF’s yield appeal.
Weak Domestic Data: Disappointing Swiss retail sales and declining manufacturing output have raised concerns over economic momentum.
Diminished Safe-Haven Demand: As global risk appetite improves, investor demand for traditional safe-haven currencies like CHF has softened.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
The Bank of Canada maintained its policy interest rate at 2.75% in April 2025, opting for caution amid global economic uncertainties.
Looking at the CADCHF 4-hour chart, The pair is exhibiting a potential shift in momentum after a prolonged selling phase. Price reached a significant low around 0.58400, where it formed a Triple Bottom pattern — a classic reversal signal. This technical structure was followed by a break above the minor resistance level at 0.59500, marking a clear Change of Character (CHOCH) that signals emerging bullish sentiment.
Currently, price is showing signs of accumulation within a liquidity zone. If a liquidity grab or stop-hunt occurs inside this area, it could set up for a breakout continuation. A potential area of interest lies around 0.59530 (possible breakout point), with risk managed below 0.59010 if liquidity forms. A longer-term target aligns with the next major resistance zone around 0.60690.
This setup reflects evolving market structure and buyer interest, supported by strengthening fundamentals favoring CAD.
Fundamentals Supporting CAD:
Easing U.S.–China Trade Tensions: Recent comments from U.S. Treasury Secretary Scott Bessent suggested a likely de-escalation of tariff disputes, lifting global risk sentiment and supporting commodity currencies like CAD.
Oil Price Recovery: Oil prices climbed nearly 2% to $64.31 per barrel, reinforcing CAD strength given Canada’s heavy reliance on energy exports.
BoC Policy Stability: The Bank of Canada held its benchmark rate at 2.75% in April 2025, citing external risks but expressing confidence in domestic resilience. This policy stance supports financial stability while remaining responsive to global developments.
Fundamentals Weakening CHF:
Dovish SNB Stance: The Swiss National Bank signaled no rush to tighten policy despite lingering inflation, which undermines CHF’s yield appeal.
Weak Domestic Data: Disappointing Swiss retail sales and declining manufacturing output have raised concerns over economic momentum.
Diminished Safe-Haven Demand: As global risk appetite improves, investor demand for traditional safe-haven currencies like CHF has softened.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.