CADCHF → Retest of a key support area (bullish check)

24 mai 2023

CADCHF after forming a reversal setup on the basis of the downtrend, forms an active growth and breaks the channel resistance. The price is in consolidation, what to expect from the currency pair in the near future?

The pair makes a retest of the support at 0.66365 - 0.66247. False breakthrough is possible (or the retest of the previously broken line), but the priority should be the strengthening of the currency pair.
After breaking through the resistance, the price continued to test the previously broken boundary, but did not return to the range. The emerging consolidation allows to gather the necessary liquidity for a possible continuation of growth. Price is in sideways movements more than 70% of its time, so, this set-up is within reason.
MA-50 is present as resistance
MA-200 supports the price.

Strong support: 0.66365, 0.66247, upper boundary of the descending channel
Strong resistance: 0.66735, 0.67138
I expect a retest of the support and possible false breakdown. The bulls will hold this area, and if everything goes well for the bulls, we will see an active recovery to 0.67000.

Regards to R.Linda!