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CHFJPY & GBPCAD Outlook

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The CHFJPY pair has seen plenty of trending price action over the summer. The price formed a bull flag around 114.500 to break out of its rising channel but ran into resistance above at 118.078. The decline since then has brought the pair back into the rising channel. Price is currently positioned at 113.800. A continued move lower may find support at the previous resistance of 113.273 with the 100 DMA rising to support the level. The supportive trend line at 112.115 may get additional strength from the 200 DMA, which is levelling out of its decline. Below this area the lows from August might provide support around 110.728. The 110.000 level might attract interest due to it being a round number. Apart from this; support from the May lows around 108.543 may influence price if it reaches down that far.

Resistance at the 50 DMA might very well be tested 114.440 on a retracement higher. If this turns into a stronger short squeeze to 115.000 and above, the rising resistance trend line around 115.300 may become a focus area. This level provided resistance at the end of August and was the high of the Bull flag. Beyond this area 116.460 is an area of lighter resistance as the price advances. The highs from September are the focus of long traders around the 118.000 level.

The GBPCAD pair has trended lower since creating a high in March around 1.8412. This chart has been affected by Brexit headlines and Canadian trade deals with the US, but also by the rising Oil price. Price is currently trading at 1.6940 and the next support is found at the 50 DMA at 1.6886. Under this area the long term support at 1.6600 will be a key area to watch. This level has held price from sliding lower and has been repeatedly tested. A loss of this level may find support at 1.6354. However continued selling of the pair could push price down to 1.6000 followed by the 1.5842 support from 2017.

Resistance at the falling trend line at 1.7065 is bolstered by the 100 DMA at 1.7095. A break above these levels may seek to test 1.7200 and this level will need to be overcome in order to test higher levels such as the 1.7400 area. This area is hosting the 200 DMA at present. Beyond this, the June high at 1.7768 may play a part in forming resistance with a break above this area potentially pointing to a retest of 1.8000. The March high would be a major obstacle to high levels if a break out occurs in the months to come.

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