CADCHF has been trading in a slight ascending channel for the last 6-months. After moving away from the lover channel at the start of the year, prices are once again testing the mean.
Should prices bypass the mean and move higher, this could negate the small bearish divergence hinted on the momentum indicator.
Further fresh highs could then ensue, as the momentum will keep the channel progressive towards the 0.71 area.
However, should the bearish divergence come into play, then the top border of the Ichimoku cloud is expected to be the next support level, which is highlighted on the chart.
An intraday perspective looks at a further climb towards monthly highs, after a bounce at the 38.2% of the 0.6862/0.7032 upside Fibonacci leg.
With prices now engulfed within the cloud, we now look for further clues on the momentum indicator.
A suspected hidden bearish divergence could occur should momentum increase, which in turn could lead prices back to 38.2%.
There, a move towards the 50% could ensue if the full force of the divergence kicks in.
How do you feel the CAD will fare in the coming weeks? Open your Orbex account and trade now!
