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The right monthly chart of the CAD/CHF is showing that the price has traded into a very important bottom level at the 0.70 round number. This level has never been fully broken. The monthly chart candlesticks show multiple failed breakout attempts to break below the 0.70 price level but every time the price was rejected.
Last month’s monthly candlestick was the lowest close for the CAD/CHF. The question now is whether this will turn into a strong bear trap and snap back higher, or mark the start of a bearish continuation?
The left daily chart shows that the price is currently trading at the 38.20 Fibonacci retracement level that the recent bearish trend provides. Unless the price is able to fully break above the current highs and close convincingly above 0.695, the CAD/CHF is in a neutral phase, trading inside a range.
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