🚨 **CAD/CHF: Strong downtrend despite fundamental divergence!**
The pair keeps dropping, but a correction could offer a better short entry. Here's my full breakdown 👇
🔎 **CAD/CHF Analysis – Ongoing Tech/Fundamental Divergence**
📉 The trend on **CAD/CHF** remains clearly bearish and has been intact for several weeks. We’ve broken key levels multiple times, notably **0.61990**, which was retested and then broken again. Most recently, a short-term support around **0.59600** has also been breached, reinforcing the bearish momentum.
🕵️♂️ I’m currently watching for **a corrective move** to get a cleaner entry for shorts. However, **client sentiment is largely short**, which isn’t ideal if we expect an immediate continuation — risk of overcrowding.
📊 On the **fundamental side**, rate differentials favor the Canadian dollar, but the **Swiss franc remains highly attractive**, especially in a risk-off environment. That’s where things get tricky: **technicals are strongly bearish**, yet **fundamentals would suggest a potential rebound for CAD/CHF**.
🔁 For now, **there’s no clear technical trigger** for a long-term bullish reversal. As long as that remains the case, I maintain a **bearish bias**, waiting for a potential pullback to re-enter short.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.