CAD/CHF in search of directionality in the 0.73-0.74 range

• The market is currently trading in the 0.73-0.74 range.
• Canadian GDP is scheduled on Thursday at 12.30.

The CAD/CHF is currently trading at around 0.7355 virtually unchanged on Monday after last week the bulls managed to break above the descending trendline of the daily time frame.

No major macroeconomic data is expected in the next 24 hours while Thursday will see Swiss Kolf leading indicator as well as the Canadian GDP. 

According to analysts at ING the Bank of Canada’s tightening cycle is expected “to continue in the second half of this year.” While the Swiss National Bank is mainly expected to remain on hold in the same time frame. 

CAD/CHF weekly chart

The CAD/CHF is finding support at the ascending trendline on the weekly chart. Bulls are want to break above the high of last week at 0.7400; after which bull would likely target the 0.75 handle close to the 100-period simple moving average while bears want to challenge the low of last week at 0.7250 to then reach 0.7130 last swing low. 

CAD/CHF daily chart

The bulls managed to break above the trendline and the market has entered a range in the last four days as both bulls and bears are fighting for the next directional move. A strong breakout above the 0.74 handle would likely lead to a sustained move to the 0.76 handle with both the 100 and 200-period simple moving average. On the flip side, a break below 0.73 handle would lead to a retest of last week’s low at 0.7250 and possible to the cyclical low at 0.7225.