The Canadian Dollar
has been weakening against the Swiss Franc
during the past seven weeks, thus forming a channel down. The latest upward wave started late on September and it has since led the Loonie towards the upper channel boundary. In fact, this line was reached on two occasions last week that should, in theory, result in a movement down until the lower channel boundary. However, there is another possible scenario in this situation.
Technical indicators suggest that the rate should soon reverse to the upside. The rate hindering near the upper channel line suggests that the overall bearish
sentiment might actually change in favour of bulls.
This scenario should be confirmed if the rate overcomes the nearest resistance cluster formed by the weekly PP
, the 200-, 100– and 55-hour SMAs in the 0.7815/30 territory.
The upside target in this case could be the monthly R1 at 0.7916.