Preparing for the publication of economic statistics
Technical Analysis Summary CAD/CHF: Neutral
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Sell | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, CADCHF: D1 is trying to return to the upper part of the wide neutral range. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if CADCHF: D1 rises above its most recent high of 0.749. This level can be used as an entry point. Initial risk cap is possible below the 200-day moving average and the last 2 lower fractals: 0.735. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (0.735) without activating the order (0.749), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of -
Switzerland released weak inflation data. Will the CADCHF quotes continue to rise?
The move up means the strengthening of the Canadian dollar against the Swiss franc. There are technical signals, but there are not so many of them. The movement of quotes may depend on economic statistics. Switzerland Consumer Price Index rose +3.4% y/y in June. The data came out on July 4th. For the first time since 2008, inflation exceeded 3% and was the highest since 1993. It is much higher than the Swiss National Bank (SNB) rate, which is negative at -0.25% now. The next meeting of the SNB will take place only on September 22. Recall that, according to the SNB, inflation in Switzerland this year will be 2.8% y/y and will drop to 1.6% only in 2024. On July 7, the Switzerland Unemployment Rate for June will be published. The outlook is neutral (2.2%). In turn, the Canadian dollar may be supported by high world oil prices. Good data on Canada's GDP for April (+5% y/y) came out last week. This week, on July 7, the trade balance will be published and on July 8 - Canada Employment Change. Theoretically, economic statistics may influence the decision of the Bank of Canada (current rate +1.5%) on further tightening of monetary policy at the meeting on July 13th.