FX.co ★ CAD/CHF remains bearish but watch for a potential channel break

Price is now testing major resistance at 0.7404 (channel resistance, horizontal overlap resistance, Fibonacci retracement), but we're also seeing that it might break out of our long term descending channel, so we have to be careful and monitor price movement. If the price starts reacting off our selling area and reintegrates nicely into the channel, then we can expect a further push down towards the 0.7318 support (Fibonacci extension).

RSI (89) sees a long term descending resistance line holding the bearish momentum in price really well. However, we can also see that there is a chance that it will start to break out so we have to exercise caution and monitor it closely.

Sell below 0.7404. Stop loss at 0.7446. Take profit at 0.7318.