The CAD/CHF pair remains an island of stability in the Forex market. The flat trend is very stable and this attracts traders who dislike high volatility and are looking for reliable assets for long-term investments. Such stability is not typical for the confrontation between the raw materials and safe assets. Nevertheless, the Swiss franc is quite strong this autumn, and continues to successfully resist the strength of raw materials assets. But how long will this situation last? Isn't it time to look for new assets for reliable investments?
This week has been very busy for the Canadian dollar. External factors had an exceptionally positive impact and contributed to growth: impressive macroeconomic reports from China and the rising prices for raw materials - especially oil, which this week exceeded $51. This allowed the CAD to stay at the current level despite the decrease in the Ivey PMI business activity index, as well as the Bank of Canada's meeting, where there were signals about the regulator's readiness to reduce the interest rate.
Safe assets are not the most popular assets to invest in today. Optimism continues to prevail on the market regarding vaccines that are about to be launched into mass production and actively used in the fight against the coronavirus. Nevertheless, the CHF has unexpectedly become one of the most reliable safe assets, showing growth and supported by good economic indicators in Switzerland.
At the moment, we can't see any signs of the end of the flat trend for the CAD/CHF. Moreover, we are confident that it will continue until at least until mid-January. However, in the long run, we still expect the coronavirus situation in America to improve, which should strengthen the CAD even more than now. We consider the deals to BUY to be the most promising in the long term, but today we can see a slight shift in the rates towards the support line. The MACD is neutral in a flat trend, while the Stochastic oscillator is also committed to the deals to BUY.
