After a multi-week upswing, CAD/CHF is printing bearish candlesticks just ahead of the Bank of Canada (BOC) policy decision.
Have Loonie bulls dropped the ball like Klay Thompson fumbled Megan THEE Stallion, or are they just waiting on another bullish catalyst?
Here’s what we are seeing on the 4-hour chart:
CAD/CHF 4-hour Forex Chart Faster with TradingView
The Canadian dollar has been making pips rain against the safe haven Swiss franc for at least two weeks now, helped along by the Swiss National Bank putting its own brand of blockade on further CHF gains.
With the Bank of Canada set to release its latest policy decision later today, all eyes are on Loonie pairs like CAD/CHF. Our Event Guide for BOC’s Policy Decision points to possible profit-taking after the recent hawkish buildup, which puts that .5800 resistance level right back in focus.
Remember that directional bias and volatility in CAD/CHF are often driven by geopolitical headlines and fundamentals. If you haven’t done your homework on the Canadian dollar and the Swiss franc, it’s time to check the economic calendar and stay updated on daily fundamental news.
CAD/CHF has been grinding higher since mid-April, printing higher highs and higher lows. However, it’s now running into the .5800 psychological level and starting to show signs of hesitation, with long wicks and a few bearish candlesticks creeping in.
That pause is not surprising because this area lines up with the R2 pivot around .5783 on the 4-hour chart, and it has also capped price since mid December 2025, so it is the kind of level where traders tend to take a step back and lock in profits.
If sellers keep leaning in, then the spotlight shifts to trend line support, and we could see price ease back toward the R1 pivot near .5761 or even the .5750 inflection point, and if that breaks, then the next area to watch comes in around .5730 near the 100 and 200 SMAs.
But if bulls regroup and push price cleanly above .5800, then that could open the door for another leg higher toward .5820 and possibly a retest of the .5845 highs from December.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
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CAD/CHF is knocking on a key resistance ahead of a possibly bearish catalyst. But as any trader learns the hard way, even the best-looking setup can fall apart without the discipline to stick to the plan.
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