There is a high probability of a trend reversal in CAD.CHF quotes, given that they have been at historical lows for a long time. The only question was when this would happen. The rapid downward trend became possible against the backdrop of weak demand for commodity currencies, while the Swiss franc was preferable to investors than the yen.
The Canadian dollar periodically receives support from high oil prices, but this factor only permanently supports the currency. At the same time, the Bank of Canada has taken a pause in raising interest rates, and the decline in inflation tells us that rate increases are unlikely to occur in the foreseeable future. In fact, the Canadian dollar was left without any support factors this week, while demand for safe haven assets is growing. However, it's not all bad for CAD. Investments in this currency are more attractive than ever, since entry at a minimum price is the main rule for Forex trading. The main thing is to find the moment to enter with Purchases. Perhaps such a moment is happening now, and here’s why.
The Swiss franc, despite good demand, has lost its momentum. On the chart we can see that quotes have retreated from their minimums, and this is due to a decrease in foreign exchange reserves to the minimum level in 7 years. In general, the SNB is not interested in a strong franc and will do its best to prevent it. Our decision to sell the Canadian dollar a few months ago was as accurate as ever, but today we are expecting a significant price correction or trend reversal from CAD/CHF. So today, we are opening Buy trades. The MACD, Stochastic oscillators are directed upward and confirm our theory.
