CAD/CHF has been moving clearly downwards since January 5 heading towards lower highs and lower lows. The pair found the support near 0.6970, but under the heavy volume it has been broken on January 15 confirming the ongoing downtrend.
After the support breakout, the Fibonacci retracement indicator applied to the first corrective wave up showed the potential downside target near S2 (0.6775). Then, after moving lower again, the current corrective wave was stopped at the 23.6% Fibonacci retracement applied to a high reached on January 5 and today's low.
Consider selling CAD/CHF while it is trading near R1 (0.6975), targeting the S2 (0.6775) support area. The stop loss should be placed well above the R1 resistance.
Support: 0.6850, 0.6775
Resistance: 0.6945
