CAD/CHF – OPEC+ Meetings Left Cliff-Hanging

#OPINIONLEADER# #Signal# #OPECmeetingupdates#

 JUL 7, 2021

• No conclusion from OPEC+ meeting
• Rebound expected in Canadian jobs market
• Ascending Triangle setup in CAD/CHF (D1)

Chart 1: CAD/CHF D1 chart

The OPEC+ meeting in June has reached a roadblock when the issue with the United Arab Emirates (UAE) wanting its production baseline to be increased failed to be resolved. As of now, the meeting remained cancelled. Also, all members of the OPEC+ except the UAE have agreed to increase oil production by 400,000 barrels-per-day from August to December. Nonetheless, without the consensus of all the members, the agreement will not go through. As a result, oil prices rose, strengthening the Canadian dollar.

The Canadian jobs report that will be released this Friday at 2030 (GMT+8) is expected to show a strong recovery in employment for the month of June. Hence, we may be seeing fundamentals aligning with the strengthening of the Canadian dollar. Technically, an Ascending Triangle patten in forming in progress in the daily chart. Therefore, if the Canadian jobs data release is at least as positive as forecasted, look for buying opportunities of CAD/CHF after it break out of the Ascending Triangle pattern.

Ascending Triangle Setup for CAD/CHF (D1)

Buy Stop order at 0.75300

Upcoming major news that may impact price movement of CAD/CHF

07 July – Canadian Ivey PMI data release at 2200 (GMT+8)

09 July – Canadian jobs data release at 2030 (GMT+8)

14 July – Bank of Canada monetary policy meeting at 2200 (GMT+8)