Key Take-Aways

  • CADCHF broke the previous Lower Highs @ 0.6627
  • A Clear divergence formation on the H4 Chart.
  • CXY Approaching the 73.68 demand area.
  • Will the premium Fib levels hold the price from falling below Demand?

Technical Analysis of CAD/CHF – SwissyCAD

The CADCHF recently broke the recent Lower high, around 0.6627 indicating a potential reversal to the upside. Knowing that the market rarely turns or reverses without giving a notification, it gave us a regular bullish divergence as heads-up. On the 4-Hour chart, the divergence was created on 4th May 2023 with a Bullish engulfing candle pattern, signifying the arrival of the Bulls on the scene. However, will the Bulls be able to maintain their momentum?


There are a few indicators that point out to us the possibility of a trend reversal on CADCHF.

  1. The Sell Trend Line has been broken with an impulse.
  2. The previous Lower high has also been broken with an impulse.
  3. CXY-The Canadian Index is currently in a short-term sell approaching the demand zone.
  4. Price gave a regular Bullish divergence with a bullish engulfing candle pattern.

CADCHF is currently retracing towards the fib levels for smart traders and investors to buy at discounted price areas. In the history of technical analysis, the Fibonacci has been a proven tool for accurate forecasts regarding when a retracement is likely to end or PRZs – Potential Reversal Zones.

A few levels technical traders often look at are 38.2 for the shallow retracement, 50 and 61.8 level is considered as the golden zone, and 71, 78.6, and 88.6 are regarded as the premium/discounted levels for a deep retracement. And these last levels usually happen as the second wave in the Elliot wave theory, where wave 2 must not close below the originating point of wave 1 in a buyers market, and wave 1 is considered the impulse wave.

Will wave 1 be strong enough to hold up wave 2 in its discounted levels?

Adewuyi Ayodeji James known as A.A.James is a forex analyst and a passionate educator. He has almost a decade of experience in the global financial market and has taught hundreds of students across different countries and growing. He once served as a Business Development Manager, and the Head of Client Relations for Suavally Market Global, a leading forex institute in Africa. During his time at Suavally, He also doubles as the education Champion for one of her Partner brokers M4Market. A.A. James is a Dealer/Educator at ACT Brokers, the only Forex Brokerage firm with a dealing desk in Nigeria. He also teaches at RUBY FX Solutions. A.A. James is the Face and Host of the popular MORNING MARKET; a daily market analysis that holds every morning before the London session opens, with the growing attendance of clients from different brokers from across the globe. He is a Well sought-after retail FOREX Educator, both independent and Trainer for forex Broker(s). A public speaker, Mentor, and Life coach. A Recording Artist, Music, and Art Director with over a decade of active experience.