Crude oil seems to be holding its ground lately, so can the correlated Loonie also find support?
Check out this CAD/CHF range setup!
But first, here are the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Business NZ manufacturing index up from 51.6 to 54.3
Asian shares rebound as global inflation woes ease
Chinese stocks tumble as policy easing speculations fade
Japanese gov’t to raise wages for nursery and care workers
OPEC lowers oil demand forecast for Q4 2021
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. JOLTS job openings data at 3:00 pm GMT
U.S. preliminary UoM consumer sentiment index at 3:00 pm GMT
FOMC member Williams’ speech at 5:10 pm GMT
U.S. Treasury currency report due
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: CAD/CHF
This pair is already down to the bottom of its short-term range, and it looks like support is holding like a boss!
Can CAD/CHF climb back to the range resistance from here?
Stochastic has a bit more room to head north before indicating overbought conditions, so buyers might still have some energy for a move back to .7370.
However, the oscillator is also closing in on the overbought zone to signal exhaustion. Turning lower would mean that sellers are ready to take over.
At the same time, the 100 SMA is below the 200 SMA to suggest that support is more likely to break than to hold. If that happens, CAD/CHF could tumble by the same height as the rectangle or roughly 55 pips.
Keep in mind that the OPEC downgraded its global oil demand forecast for the last quarter of the year due to higher costs crippling purchases. This could bring some bearish vibes for the oil-related Loonie while risk aversion keeps the lower-yielding franc supported.
If you’re looking to short this one, better wait for a test of the range resistance or a breakdown of support!
