• CADCHF reversed from the major support level 0.7100
• Likely to rise to resistance level 0.7250
CADCHF currency pair recently reversed up from the major support level 0.7100 (previous multi-month low from August) – strengthened by the lower daily Bollinger Band. The upward reversal from the support level 0.7100 stopped the previous intermediate ABC correction (2) from the middle of October.
Given the strength of the support level 0.7100 and the bullish divergence on the daily RSI indicator, improved CAD sentiment as seen across the FX markets today on oil gains, CADCHF currency pair can be expected to rise further toward the next resistance level 0.7250 (top of the previous short-term correction (iv)).