CAD/CHF 1H Chart: Channel Up
- The Canadian Dollar is trading against the Swiss Franc in a two week long ascending channel.
- Up until Tuesday the currency pair moved relatively smoothly within the figure.
- However, then it suddenly failed to break through a combination of the weekly and monthly PP, which were supported by the 55- and 100-hour SMAs.
- As a result, it was forced to retreat to the top and to move along the moving averages, which has led to transformation of the channel into a rising wedge.
- If the latter pattern actually guides movement of the currency pair, then it should successfully bypass the weekly R1 at 0.7720 and make breakout from the pattern somewhere around the 0.7740 mark.
