The coast is clear in terms of major economic reports today, so I’m just looking at this simple range play.
Think CAD/CHF could make it back to the top?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Asian shares off to a slow start, as investors weigh inflation releases
- Japanese wholesale inflation on the rise on higher yen-based imports
- Japanese BSI manufacturing index rebounded from -1.4 to +7.0
- Dollar firms footing ahead of U.S. CPI this week, gold subdued
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. Federal budget balance at 6:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: CAD/CHF
This pair is already sitting at the bottom of its short-term range, and it looks like support is holding.
Will it bounce back to the range top from here?Stochastic is already moving up from the oversold region, which means that buyers are regaining the upper hand while sellers take a break.
In that case, CAD/CHF could climb back to the range resistance at .7280 next.
Just be careful since the moving averages just showed a bearish crossover, although these indicators might not be so reliable in rangebound markets. Still, be on the lookout for some resistance around these dynamic inflection points.
There are no major reports from both Canada and Switzerland today, but concerns about a crude oil supply crunch could keep the correlated Loonie afloat.
After all, production disruptions from Hurricane Ida likely weighed on output in the past week, so traders might be counting on a large draw in stockpiles.