Can the CAD/CHF Extend its Bearish Trend?
August 12th, 2009 Posted in Analyst Picks
Name: Yan
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Looking at the CAD/CHF 4-hour chart, it looks that the pair’s bearish momentum hasn’t reached its limit. Using variable technical indicators and the Fibonacci Retracement lines, let’s try to see whether the pair is likely to drop further or maybe to initiate a trend reversal.
• The chart below is the CAD/CHF 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI). The Fibonacci Retracement lines were drawn as well.
• The Slow Stochastic is currently fluctuating below the 20 line, indicating that the momentum is extremely bearish.
• A bearish cross has taken place on the MACD, suggesting that the bearish trend has more room to go.
• The RSI has bottomed at the Over-Sold section, yet it continues to point down. This means that the pair could still drop further.
• The Fibonacci Retracement lines show that the pair has dropped below the 38.2% line, located at the 0.9795 level, and is currently dropping towards the 23.6% line, located at the 0.9720 level.
• If the pair will drop below the 23.6% line, it may have the potential to reach as low as the 0.9600 level (the 0% line).
• However, if the pair to fails to breach the 23.6% line, it is likely to rise back to the 0.9795 level (the 38.2% line).
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Tags: cad, CAD forecast, CADCHF forecast, CHF, CHF forecast, Forex, forex blog, forex market, Franc, loonie, Swiss Franc, Switzerland, Technical Analysis
