CAD/CHF tries to recapture last week's high (7019.1) and break above sloping trendline resistance at (1) which has managed to cap further gains over the past 2 weeks. CAD/CHF bears will be eyeing this current level (6990.0) for a selling opportunity and a re-test of the 38.2% fib level that previously provided strong enough support for a bounce, allowing the bulls to step back inside the channel (A). Below the 38.2% fib level, taken from the February highs this year and the March lows, would put this currency cross into bear territory, which could set a bearish tone for the short to medium term.
A convincing break above resistance at (1) puts the ball back in the bulls court and providing they can stay inside the channel, the overall uptrend will stay intact and further upside should ensue.
And there is this. It’s worth noting, Smart Money Hedgers are massively short the Swiss Franc (CHF)