CAD/CHF 4H Chart: Channel Up

Jul 7, 2017

The Canadian Dollar is appreciating against the Swiss Franc in a three week long ascending channel. The pattern started to form shortly after the currency exchange rate has reached the 2017 low at 0.7135. By the early Friday's morning, the pair has successfully broken though the weekly R1 at 0.7442 and now is approaching the 55-period SMA, which is backed up by the 100-period SMA and the weekly PP near 0.7360. Most probably, a combination of these technical indicators will force the rate to make a rebound. In this case, the channel might start to transform into a rising wedge. In contrast, if it succeeds to bypass these barriers, there should be no other obstacles preventing to reach the bottom boundary of the channel.