CADCHF → reversal set-up. Resistance retest

15 May 2023

CADCHF has been in a descending price channel for a long time. False break-down of the resistance does not give much result and the price comes back to the retest of the resistance.

Because we have a downtrend within the range, it was logical to expect a fall after a false-break, but the support level at 0.66247 holds the price back and after a false-break the currency pair returns to the retest of the upper border of the channel.
A global reversal set-up is formed on the chart, the base of which is the level of 0.66365. If this zone is breached (channel resistance passes here as well) the price may show a strong bullish momentum.

Strong support: 0.66247, 0.6597
Strong resistance: 0.66365, descending border of the channel
I expect that in the nearest future the price will be able to break the mentioned resistance and continue the attempt of trend change, which may be successful.

Regards to R. Linda!

17 May 2023

Not

Channel resistance breakdown
The scenario of currency pair strengthening begins to develop