CAD/CHF Forecast Today 27/11: Loonie Gains Vs. Franc (Chart)
Date
11/27/2024 2:41:31 PM
(MENAFN- Daily Forex)
The Canadian Dollar has plunged pretty significantly against the Swiss Franc, only to turn around and show signs of strength again. By doing so, the market is definitely showing that the previous consolidation area has a certain amount of market memory attached to it. This makes sense, as there is so much action that has occurred in this pair recently in this area.
As we hang around the 0.63 level, we also are sitting just above the crucial 50-day EMA. The market will, more likely than not, continue to pay close attention to the 50-day EMA, as it is crucial for our technical analysis. It's probably worth noting that the actual resistance barrier from the previous consolidation area is closer to the 0.6333 level.
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The 200-day EMA, which is near the 0.64 level, has offered a significant ceiling in the market over the last couple of days, and we did pull back rather significantly. If we can break above that level, then it's likely that this CAD/CHF market truly takes off, perhaps reaching the 0.66 handle. This is what I expect given enough time, but I recognize that there is a bit of work to be done in order to make this happen.
On the downside, I believe that the 0.62 level will continue to be a major support level, as we have seen it act in the past as exactly that. Anything below there, I think it's a wipeout for most Swiss Franc-denominated currency pairs. You will probably see this in Dollar/Franc, the New Zealand Dollar against the Franc, Aussie Dollar, British Pound, etc. That would probably denote some type of run toward safety.
As things stand right now, though, it does look like there are value hunters willing to get involved.
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