CAD/CHF Volatility Continues as Carried Trade Play Remains Attractive

The CAD/CHF pair saw significant volatility on Thursday due to the Canadian dollar's ongoing struggles in the oil markets and its trade war with its biggest partner. The Swiss National Bank maintained interest rates at 0%, which was expected, but some statements surrounding the decision contributed to market fluctuations.

Despite this, traders view the CAD/CHF pair as a carry trade play, where buying the Canadian dollar against the Swiss franc is seen as a lucrative opportunity in the long term. The target price of 0.59 is considered psychologically significant and a key level for traders to focus on.

The 50-day EMA sits near the 0.5825 level, while support lies at 0.58. Traders are advised to buy on dips due to the long-term potential of this pair. A prominent trader expresses no interest in shorting the CAD/CHF, citing the interest rate differential as a major deterrent.