CAD/CHF healthy correction after 200-pip gain last week

• Bank of Canada’s Governor Poloz to speak on Tuesday at 14.30 GMT.
• Swiss National Bank expected to keep rates on hold on Thursday at 8.30 GMT.  

The CAD/CHF is currently trading at around 0.7383 down 0.57% on Monday. Last week the CAD/CHF gained 200 pips after finding a bottom at 0.7225. 

CAD/CHF weekly chart

The CAD/CHF is trading in the lower end of a bullish channel. Last week the buyers put in a strong reversal bar which engulfed the previous week’s range. The RSI touched the oversold line. The last time it happened in January 2016 the market had a strong reversal up. 

On the Canadian macro front, Governor Poloz from the Bank of Canada is slated to speak on Tuesday at 14.30 GMT. He will talk about the labor market. A Q&A will follow the speech. Canadian ADP employment change in February is slated on Thursday at 12.30 GMT. January’s Manufacturing Sales data are scheduled on Friday at 12.30 GMT. 

The Swiss National Bank interest rates decision and quarterly bulletin are scheduled on Thursday at 8.30 GMT. No change in interest rate is expected according to Danske Bank. More info here. 

CAD/CHF 4-hour chart

Support is seen at the 0.7350 level 38.2% Fibonacci retracement and 100 SMA. Further down the 0.7300-0.7325 region should provide additional support with the 50% and 61.8% Fibonacci retracement. To the upside, the high of last week at 0.7425 and the 200 SMA should provide some resistance for bulls. Further up, the next scaling point is seen at the 0.7500 psychological level.