After its reversal in the end of March, CAD/CHF started climbing higher, forming higher lows and higher highs. In addition to that, the pair has been trading within a rising channel pattern, which also started off at the end of March. The rate is currently trying to move above its key resistance level, at 0.7596, which is marked near the high of last week. In order to remain positive with the short-term outlook, we would like to see CAD/CHF staying above the 0.7596 barrier.
As mentioned above, a strong push through the 0.7596 hurdle could lead to a test of the 0.7618 resistance zone, marked by the highs of February 25th, 27th and March 1st. There is a chance to see the rate getting held around there, or even retracing back down a bit. But if the bears are not able to get the rate below the 0.7596 area, the buyers could pick up on that, join in and drive CAD/CHF back up towards the 0.7618 hurdle. A break of which might open the door for the pair to travel higher, where the next potential resistance zone could be around the 0.7644 level, marked by the peak of February.
Looking at our oscillators, the RSI and the MACD, both are somewhat in support of the above-discussed scenario. The RSI is above 50 and slightly pointing higher. The MACD is in the positive territory and is trying to move above its trigger line.
Alternatively, if the rate slides below the 0.7570 support area, this is when we could start looking into a possibility of a correction within the rising channel formation. The next support zone in line for CAD/CHF could be the 0.7553 mark, which is the low of April 18th. If that area is not able to withhold the bear-pressure, the pair could continue with its journey south, towards the 0.7543 level, marked by the high April 15th. But in addition to that, the downside could be limited due to the lower bound of the rising channel formation, which may provide additional support.
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