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CADCHF trade ideas

CAD/CHF: Sellers Press for Control Amid Economic DivergenceMarket Overview On Wednesday, 27th November 2024, CAD/CHF found itself under significant bearish pressure, primarily driven by contrasting economic developments in Canada and Switzerland. Technical Analysis From a technical perspective, the daily chart of CAD/CHF reveals bearish momentum taking over after price bounced off a mid-term descending trendline. Price touched this trendline, met selling pressure, and subsequently pulled back from the resistance area of 0.64064, which coincided with the trendline. Furthermore, today's price action broke below the previous support level at 0.62851, indicating a continuation of the downward momentum. This breach weakened a critical support level, paving the way for additional downside. The next downside target for CAD/CHF stands at 0.62521, which serves as the first immediate support. If bearish pressure persists and this level is broken, subsequent targets are 0.62349 and 0.62101. A potential reversal scenario would be validated if the price recovers and sustains above the 0.63314 mark, which coincides with the 61.8% Fibonacci retracement level.
Short
by Errante
CADCHF BUY1. Strong Economic Indicators for Canada GDP Growth and Employment: The Canadian economy shows stable growth, with strong macroeconomic data like GDP and low unemployment supporting demand for the CAD. Impact of Oil Prices: As a major oil exporter, the CAD is highly correlated with oil prices. When oil prices rise, the Canadian dollar typically appreciates, driving economic growth in Canada. 2. Technical Indicators for an Uptrend Support on the Daily Chart: CAD/CHF may be at or near a strong support level, indicating a possible reversal and continuation of an uptrend. Buy Signals from Indicators: Technical tools like RSI, MACD, and Bollinger Bands may signal an oversold zone with potential for an uptrend, which can be confirmed on platforms like TradingView. 3. Bank of Canada Policy Compared to the Swiss National Bank Higher Interest Rates in Canada: The Bank of Canada’s rate-hiking policy supports the Canadian dollar, making it more attractive compared to currencies like the Swiss franc. Weak Position of CHF: The Swiss National Bank traditionally maintains low-interest rates to keep the franc weak, especially when global markets are stable and there is less demand for safe-haven assets. 4. Stronger Risk Appetite in Global Markets Less Demand for CHF as a "Safe-Haven": Under positive global economic conditions, the Swiss franc loses its appeal as a safe asset, creating an opportunity for CAD to appreciate against CHF. Higher Interest in Higher-Yielding Assets: Due to Switzerland’s low-rate policies and lower returns, CHF may be less attractive when there’s increased interest in higher-yielding currencies like CAD. Conclusion Buying CAD/CHF can be justified by Canada’s positive economic indicators, technical signals for a potential uptrend, and the differences in the interest rate policies of the two central banks.
Long
by ForexCompany
1
CADCHF BUY1. Strong Economic Indicators for Canada GDP Growth and Employment: The Canadian economy shows stable growth, with strong macroeconomic data like GDP and low unemployment supporting demand for the CAD. Impact of Oil Prices: As a major oil exporter, the CAD is highly correlated with oil prices. When oil prices rise, the Canadian dollar typically appreciates, driving economic growth in Canada. 2. Technical Indicators for an Uptrend Support on the Daily Chart: CAD/CHF may be at or near a strong support level, indicating a possible reversal and continuation of an uptrend. Buy Signals from Indicators: Technical tools like RSI, MACD, and Bollinger Bands may signal an oversold zone with potential for an uptrend, which can be confirmed on platforms like TradingView. 3. Bank of Canada Policy Compared to the Swiss National Bank Higher Interest Rates in Canada: The Bank of Canada’s rate-hiking policy supports the Canadian dollar, making it more attractive compared to currencies like the Swiss franc. Weak Position of CHF: The Swiss National Bank traditionally maintains low-interest rates to keep the franc weak, especially when global markets are stable and there is less demand for safe-haven assets. 4. Stronger Risk Appetite in Global Markets Less Demand for CHF as a "Safe-Haven": Under positive global economic conditions, the Swiss franc loses its appeal as a safe asset, creating an opportunity for CAD to appreciate against CHF. Higher Interest in Higher-Yielding Assets: Due to Switzerland’s low-rate policies and lower returns, CHF may be less attractive when there’s increased interest in higher-yielding currencies like CAD. Conclusion Buying CAD/CHF can be justified by Canada’s positive economic indicators, technical signals for a potential uptrend, and the differences in the interest rate policies of the two central banks.
Long
by ForexCompany
CAD CHF is on continuation of bearish phaseCAD CHF is on continuation of bearish phase Seasonality trends are favoring the CHF, as CAD/CHF shows a downward trajectory. Commitment of Traders (COT) data indicates a decline in CAD/CHF, with non-commercial positioning suggesting potential strength for the CAD. However, overall sentiment from endogenous factors leans more in favor of the CAD than the CHF. That said, CHF shows improvement in endogenous factors, driven by rising manufacturing activity, stronger services PMI figures, increased business confidence, and a growing money supply. In contrast, CAD's money supply growth is negatively impacting its endogenous outlook. On the exogenous front, CAD’s GDP is declining, further weighing on its prospects. Overall, leading economic indicators, including endogenous and exogenous factors, along with the growth in CHF's real GDP (aligned with global GDP trends), collectively point to bearish momentum for CAD/CHF.
Short
by ammadbashir14
Potential bullish rise?CAD/CHF has reacted off the pivot which has been identified as an overlap support and could rise to the 38.2% Fibonacci resistance. Pivot: 0.62743 1st Support: 0.62401 1st Resistance: 0.63198 Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Disclaimer: The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
Long
by ICmarkets
1
CAD/CHF Trade Setup: Breakout Retest with High R/R OpportunityThe CAD/CHF pair has displayed significant bullish momentum, successfully breaking out of a strong consolidation zone that has persisted since August. This consolidation pattern resembled a rectangle, providing a clear range for price action. The breakout above this range indicates a potential shift in market sentiment, favoring buyers. Key Technical Observations Breakout Confirmation: The price has decisively closed above the upper boundary of the rectangle, confirming a breakout. This breakout signals increased buying interest and opens the path for further upside potential. Support and Fibonacci Confluence: The previous resistance zone of the rectangle is now expected to act as a support area upon a retest. Notably, this area aligns with the 0.382 Fibonacci retracement level, further reinforcing its significance as a potential demand zone. Bullish Continuation Bias: The breakout aligns with broader market trends and technical indicators, suggesting a continuation of bullish momentum if the support area holds. Trade Setup The following trade setup is proposed for CAD/CHF based on the outlined technical framework: Entry Zone : Near 0.63600 (retest of the previous resistance-turned-support). Stop Loss: Near 0.62800 (below the support zone to account for volatility). Take Profit Levels: TP1: 0.64400 (initial profit target near minor resistance). TP2: 0.65200 (mid-term target in line with historical levels). TP3: 0.66000 (extended target, capturing the broader bullish potential). Risk-Reward Assessment This setup offers an attractive risk-to-reward ratio with a controlled downside (80 pips) and substantial upside potential at each target: TP1: +80 pips (1:1 R/R). TP2: +160 pips (1:2 R/R). TP3: +240 pips (1:3 R/R). Market Conditions to Monitor Retest Validation: Ensure the price action confirms support near 0.63600, such as a bullish reversal candlestick or increased volume. Fundamental Events: Monitor economic data releases and geopolitical developments affecting CAD or CHF to avoid unexpected volatility. Momentum Indicators: RSI and MACD should sustain bullish trends, supporting the continuation of upward momentum. Conclusion The CAD/CHF pair presents a high-probability trading opportunity following its breakout from a well-defined consolidation zone. A retest of the newly established support area near 0.63600 offers an ideal entry point. Traders are advised to remain vigilant and adhere to the defined risk management parameters to maximize potential returns while minimizing exposure. This report is for informational purposes and does not constitute financial advice. Always conduct your due diligence before entering any trade.
Long
by trading_jupiter
Buy Idea on CAD/CHFThe CAD/CHF pair, on the 4-hour timeframe, has shown signs of bullish momentum after bouncing off the key support level at 0.6500. The formation of bullish candles and potential divergence in the RSI indicator suggest the possibility of upward movement toward higher resistance levels. 🔹 Technical Analysis: The 0.63333 level has acted as a critical support zone. The 50-period moving average (MA50) on the 4-hour chart may act as dynamic support. 🔹 Proposed Buy Strategy: 🔹 Key Notes: Maintain proper risk management with a risk-to-reward ratio of at least 1:2. Monitor economic news related to CAD and CHF, as it could significantly impact this pair. This idea is for educational purposes only, and trading decisions are the responsibility of the trader.
Long
by mohammad_alavi