Weekly Technical Outlook: CAD/CHF;Market Forecasts for January 4th – January 8th

• Resistance level   0.7294, 0.7363, 0.7395
• Pivot Level  0.7178
• Support Level  0.7107

Technical Analysis

Daily bias in CAD/CHF is looking for consolidation pattern from 0.7107 levels and is still in progress with support holding the levels strongly and the price action produced strong bullish engulfing bar followed by two bar reversal candle. This indicates a shift in momentum to an upside bias with pair closing above trend line and fib 23.6 levels and the stochastic oscillator rising above 20.0 levels.

The pair looks for a rebound for corrective upward bias with price action confirming the bullish movement. Also, medium term rally is seen in progress from the current levels and a rebound on trend line sustained trading above 0.7178 will confirm a strong long term momentum. This will remain the favored case as long as support holds and would pave the way to reach level at 0.7294. Breaks here can expect levels of 0.7363 and later at 0.7395. But in any case, break of 0.7107 levels will dampen our bullish view on the pair and should continue with the current momentum to downside and make new lower lows.

Outlook remains bullish for week.

Economic

• RBC Manufacturing PMI for the Canadian, Unemployment Rate
• Participation rate, Net Change in Employment
• Unemployment Rate for the Swiss
• Consumer Price Index, Employment Level

Area of Interest

• Strong support at 0.7107 area and closed above fib levels 23.6 levels.
• Bullish Engulfing bar followed two bar reversal strongly closing above the support area.
• Price action closed above trend line indicating shift in momentum.
• At Flip Area on Daily time frame supporting levels.

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