The CAD/CHF pair is trading with a bullish bias at 0.7020 level, having violated the resistance level of 0.7000 level. It seems like the improved crude oil prices and reduced demand for safe-haven swiss franc is brining buyers for the CAD/CHF pair.
The increased hopes for a quick global economic recovery emerged after a potential vaccine trial for COVID-19 was reported on Tuesday, which increased the risk appetite in the market. The new developments in Brexit talks, which were reported earlier in the day, showed that the EU was ready to give up its demand for access to the UK’s fishing water added in the risk appetite. Adding in the risk-sentiment was also the easing of restrictions across the globe fromCOVID-19 lockdown, weighed on US dollar.
The CAD/CHF broke out of the ascending triangle pattern, providing resistance at 0.7000 level. A bullish breakout of this level is likely to lead the pair prices towards the next resistance level of 0.7066 as the MACD and RSI both are supporting an upward trend. At the same, the bullish engulfing around 0.7005 level has also driven a strong bullish sentiment for the pair.
Entry Price – Buy 0.70174
Stop Loss – 0.69724
Take Profit – 0.70674
Risk to Reward – 1.11
Profit & Loss Per Standard Lot = -$450/ +$500
Profit & Loss Per Micro Lot = -$45/ +$500