Ascending Channel Supported by Dynamic Levels Offers Opportunities to Join the Trend

Summary:

This recent rejection off these moving averages could extend toward the upper boundary of the channel near the 0.5900 psychological level, sustaining the broader upward trend.

Buy CADCHF

EXP

Trading

0.58354

ENTRY

0.59000

TGT

0.57700

0.58416 +0.00032 +0.05%

Point

Flat

0.57700

CLOSING

0.58354

ENTRY

0.59000

TGT

Canada's economy showed significant acceleration during the second quarter of the year. According to data published by Statistics Canada, Gross Domestic Product (GDP) grew 0.8% quarter-over-quarter, easily beating the 0.1% expansion recorded in the first quarter, which was also revised up from an initial reading of 0%.

On an annualized basis, the Canadian economy expanded 3.3% in the second quarter, compared to the revised 0.3% growth seen in the preceding period. Although the figure came in slightly below the market forecast of 3.4%, it confirmed a substantial improvement in the pace of economic activity.

According to Statistics Canada, growth was primarily driven by strengthening exports, household spending, and business investment. Exports increased 3.6%, marking their largest quarterly gain since the first quarter of 2023, while household consumption rose 0.8%, reflecting resilient domestic demand.

On the trade front, tensions between Canada and the United States continue to intensify. Last week, U.S. President Donald Trump announced 50% tariffs on various Canadian goods, measures that took effect on Saturday following the failure of trade negotiations between both nations.

In response, Canadian Prime Minister Mark Carney confirmed that Canada will implement retaliatory measures starting September 8. Subsequently, Ottawa announced tariffs on U.S. goods valued at approximately CAD 27.6 billion. The duties, which will range between 15% and 50%, will affect roughly 700 products, elevating the risk of further escalation in trade tensions between both economies.

In Switzerland, trade data reveals a gradual loss of competitiveness across one of its most relevant sectors. Since 2019, the country has surrendered market share in its primary export category, pharmaceutical products, recording double-digit drops in select international markets. Although China has expanded its global presence, most of the share lost by Swiss exporters has been captured by other international competitors.

Meanwhile, comments from Swiss National Bank (SNB) Governing Council member Petra Tschudin were interpreted by markets as dovish from a monetary policy standpoint. In an interview with Finanz und Wirtschaft, Tschudin stated that the central bank is prepared to cut interest rates below zero if necessary to maintain inflation within its target range of 0% to 2% over the medium term.

These statements reinforced the perception that the SNB maintains a flexible stance, ready to act if economic conditions require further monetary support. Ascending Channel Supported by Dynamic Levels Offers Opportunities to Join the Trend_1

Ascending Channel Supported by Dynamic Levels Offers Opportunities to Join the Trend_1

Technical Analysis

CADCHF remains structured within an ascending channel, having recently reacted higher after touching the lower boundary of the pattern. Notably, the bottom of the channel aligns with the 200-period moving average, currently positioned at 0.5795. Price has consistently reacted upward each time it touches this moving average, offering solid dynamic support along the channel, while the 100-period average sits at 0.5817—a level price has already cleared to the upside, keeping bullish continuation in play. This recent rejection off these moving averages could extend toward the upper boundary of the channel near the 0.5900 psychological level, sustaining the broader upward trend.

Turning to the oscillators, the RSI sits at 67, approaching overbought territory; however, this pair historically tolerates deeper overbought and oversold conditions, suggesting the move could persist. Meanwhile, the MACD shows a bullish histogram that continues to gain depth as the signal lines remain firmly inside positive territory, indicating that the path of least resistance remains to the upside.

Trading Recommendations

Trading direction: Buy

Entry price: 0.5835

Target price: 0.5900

Stop loss: 0.5770

Validity: Sep 14, 2026 15:00:00

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