Chapter 29 CADCHF is jumping up in an uptrend
24//09/2023
Summary
Interest rate and CPI inflation rate in both countries lead the market
Fundamental analysis
Fundamentally on this pair, we saw the data release in Switzerland recently the interest rate decision with negative results worse than market expectation at 1.75 unchanged this gives more weakness for the CHF, On the other hand, we see the CPI inflation rate in Canada rise from 3.3% to 4% Better than market expectation this more likely will make the central Bank of Canada increasing the interest rate more to make the inflation stop and go back down and this will make the Canadian dollar stronger
Switzerland Policy Interest Rate
Prev.: 1.75%
Fcst: 2%
Act.: 1.75%
Canada CPI YoY
Prev.: 3.3%
Fcst: 3.8%
Act.: 4%
Technical analysis
In this 4-hour diagram chart, the market price is now 0.67272 we expect the price to move back down to the previous demand zone at 0.66700 and from there we expect the price to bounce back up to the old supply zone at 0.67800 following the daily chart uptrend with 20 moving averages pointing up.
Trading Recommendation
Trading Direction: Long
Entry Price: 0.66869
Target Price: 0.67857
Stop Loss: 0.66376
