CADCHF at resistance

The Canadian dollar has been rising recently due to higher oil prices. As Canada is one of the biggest oil exporter countries in the world, oil prices strongly influence its economy and currency.

The latest rally started as a bounceback from a rising trendline and was halted by a resistance level around 0.7050 (A). In the same time the Relative Strength Index showed a negative divergence (lower RSI as price higher or the same), indicating that upside momentum could be fading. The 50 moving average and the rising trendline could be the support on the way down. If price breaks above the resistance level A, the next level to be able to stop the rising would be the 0.7150 – 0.7200 zone (B).