- During the trading session on Friday, we have seen the Canadian dollar drop pretty significantly against the Swiss franc only to turn around and show signs in life.
- The candlestick for the trading session is a bit of a hammer.
- So, we'll have to wait and see whether or not the market can continue to rally.
If we do rally from here, the 0.62 level could be a significant barrier, which previously had been significant support. The question is, market memory, does it come into the picture here? The 50 day EMA also is racing towards that area as well. So that's something worth paying attention to as it is a little bit of technical resistance. If we break down below the lows of the candlestick for the trading session on Friday, then the Canadian dollar probably drops further against the Swiss franc.
Risk Appetite
Top Forex Brokers
This is a barometer of risk appetite. We have to worry about the Canadian tariffs and the U.S. tariffs going back and forth affecting the value of the Canadian dollar overall, not necessarily just against the Swiss franc. All things being equal, this is a market that continues to be very noisy. And if risk appetite increases, it should, at least in theory, go higher. On the other hand, if we have a lot of concern out there, about global growth, the global markets, etc, etc, then generally, you will see the Swiss franc strengthen especially against a weak currency like the Canadian dollar. With this, I'm watching the 0.62 level very closely, as it has been important multiple times over the last several months. This area is crucial as to where we could be going next. I will be watching closely, but I will also be watching all of the nonstop dramas out there.
Ready to trade our daily forex forecast? Here are the best online trading platforms in Switzerland to choose from.