CAD/CHF reached the wedge target, with resistance seen at 0.6600
An interesting cross when analysing the single currency baskets. On Monday the 1st of May the CAD basket hit resistance. On Tuesday the 2nd of May the CHF basket hit support. At that point, we were near the peak of an ending wedge pattern.
Strong downward pressure in the CAD and oil projected this cross-currency lower.
We have now reached the measured move target of 0.6544. Although there is no clear indication of a change of trend, we could see some profit taking.
Yesterday’s price action has left a bearish outside candle. This candle formation is negative for sentiment, and I would look for rallies to be sold into. Bespoke resistance today is located at 0.6600. This is also a pivotal level for the CAD/CHF.
