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.
CADCHF trade ideas
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.
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.
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.
CAD/CHF BULLS WILL DOMINATE THE MARKET|LONG
Hello, Friends!
CAD/CHF pair is in the uptrend because previous week’s candle is green, while the price is evidently falling on the 4H timeframe. And after the retest of the support line below I believe we will see a move up towards the target above at 0.633 because the pair is oversold due to its proximity to the lower BB band and a bullish correction is likely.
✅LIKE AND COMMENT MY IDEAS✅
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.
BUY CADCHF - Price Action Entry Revealed!!!Trader Tom, a technical analyst with over 15 years’ experience, explains his trade idea using price action and a top down approach. This is one of many trades so if you would like to see more then please follow us and hit the boost button.
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CADCHF POTENTIAL LONG/BUY SWING TRADE OPPORTUNITYHey everyone! Hope you are having an amazing weekend so far and an amazing Sunday! Just wanted to come on here and make a video post breaking down a potential long/buy opportunity I see on the Canadian Dollar (CAD) vs the Swiss Franc (CHF). Hope you guys enjoy and please boost this post and follow my page for more setups and analysis!
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CADCHF - Long after filling the imbalance !!Hello traders!
‼️ This is my perspective on CADCHF.
Technical analysis: Here we are in a bullish market structure from 4H timeframe perspective, so I look for a long. I want price to continue the retracement to fill the that huge imbalance and then to reject from bullish OB.
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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.
Could the price reverse from here?CAD/CHF is rising towards the pivot which is a pullback resistance and a reversal from this level could indicate a double top pattern which might lead to a potential price drop to the 1st support.
Pivot: 0.63555
1st Support: 0.63121
1st Resistance: 0.63754
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.