CAD CHF

CADCHF Currency pair flag

Latest CAD CHF Analysis

A focus on Swiss Franc Crosses (CADCHF and AUDCHF)

  • In this article we are going to take a look at the intermediate-term outlooks for two “risk” currencies, the Australian and Canadian Dollars versus the safe haven currency, the Swiss Franc.
  • Bear trends in CADCHF and AUDCHF are a result of the current, broad “risk off” environment across global financial markets, in the wake of developing trade wars.
  • The threats for both CADCHF and AUDCHF into June are for further losses.

CADCHF

A plunge lower at the end of May last week has reinforced short-term bearish pressures and also pushed below a key swing low from March at .7384, to produce an intermediate-term Double Top pattern.

This reinforces both the intermediate-term bear trend and also leaves immediate risks lower for early June

Intermediate-term Outlook – Downside Risks: We see a downside risk for .7347.

  • Lower targets would be .7224, .7177 and .7000
  • What Changes This? Above .7493 shifts the outlook back to neutral; above .7550 is needed for a bull theme.

Daily CADCHF Chart

cadchf

AUDCHF

A plunge lower throughout May through a key swing low from late March at .7023 to form an intermediate-term Double Top pattern.

The low -level consolidation into the end of May, pushing lower again into month end late last week, sustains very short-term bear forces and keeps both short- and the intermediate-term bear trends intact for early June and beyond.

Intermediate-term Outlook – Downside Risks: We see a downside risk for .6881.

  • Lower target would .6678 and .6500
  • What Changes This? Above .7016 shifts the outlook back to neutral; above .7166 is needed for a bull theme.

Daily AUDCHF Chart

audchf

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Other major currency pairs


BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.


CAD/CHF – Live and Historical Rates

Of these two currencies, the CHF is a major, while the CAD is not. Despite that, the Canadian dollar is still the 7th most traded currency in the world. The above chart shows how many Swiss Francs one needs to buy a Canadian Dollar.

The CAD

Backed by the 10th largest economy in the world, the Canadian Dollar was introduced way back in 1871. The move ended a series of disputes regarding the currency-path the country would take, and it finally unified the currencies used by Canadians. The CAD has only been floating since 1970 though. Since 1988, the Bank of Canada, the financial authority in control of the currency, has remained largely on the sidelines, electing not to influence the CAD in any shape or form. Canada’s biggest trade partner is obviously the US, despite the fact that the country has remained under the governing power of Great Britain.

The CHF

The Swiss Franc is the currency used by the countries of Switzerland and Liechtenstein. Introduced in 1850, the CHF continues to stand on very solid footings, partly due to the massive gold reserves held by the Swiss Bank, the authority under whose control the currency falls. Despite the mass-adoption of the EUR, the Swiss managed to hang on to their national currency and there are no signs that their stance in this regard will change in the foreseeable future. Based on a strong finance sector, tourism and manufacturing, the Swiss economy is well suited to supporting its own currency. Despite being popular with Fx traders, the CHF only accounts for a little over 1% of the global daily Fx turn over.

CADCHF Analysis

The trading of the CAD/CHF is closely correlated with the trading of the EUR/USD. The economies of the two countries aren’t just radically different. One of them is massively dependent on the US, while the other, on the EU.