CAD/CHF long opportunity as the price breaks above a key resistance area

CAD/CHF has been in a bearish trend for the last few months and the price dropped to its all-time low of 0.63000. However, the price has made a recovery in the last two months and has recovered 3.8% since then. The market structure has also turned bullish since then.

The price recently closed above the previous high of 0.65100 and formed support around that price. I am expecting the price will likely retrace back to the same level for a correction before heading for new highs. The Swiss Franc is turning bearish which will also push the price of CAD/CHF upwards.

I am considering the 0.94975 level for long entry as it is a strong support level and is around 0.786 Fibonacci level. Moreover, the price has made long and healthy bull candles with big fair value gaps which indicates the price is likely to go up after filling the gaps.

Fundamentally, the price of CADC/CHF is likely to remain stable as there are fewer high-impact news that could have a substantial impact on the price of CAD/CHF.

However, CPI and inflation rate data for the US dollar will be announced today. If the data turns positive it is likely to push the price of CAD/CHF upwards and if the data turns out negative the price of CAD/CHF could drop, as the US dollar and the Canadian dollar correlate slightly. But, it is not necessary that the price of CAD/CHF will react strongly to the news on the US dollar.

• CAD/CHF broke and closed above a key resistance level recently.
• The price will possibly reach the 0.67030 resistance level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:4.1.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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