FX.co ★ Technical analysis of CAD/CHF for January 21, 2016

CAD/CHF is still moving clearly downwards within the descending channel without any signs of a potential reversal to the upside just yet. The pair is hitting new lower lows and lower highs. It is likely to produce another strong wave down.

After a breakout of the strong support at 0.6960, the price faced resistance at the same level, which was rejected for few times now. The Fibonacci applied to the first corrective wave up followed a breakout of support at 0.6960 indicates that the final target is seen near 0.6770, which has not been tested yet.

Consider selling CAD/CHF while the price is near R1 (0.6960), targeting S4 support area (0.6770) which is 361.8% Fibs. The stop loss should be well above R1.

Support: 0.6910, 0.6880, 0.6825, 0.6770

Resistance: 0.6960