AUD/CHF traded higher on Thursday, breaking above the 0.6748 barrier, marked by Wednesday’s high. Today, the pair traded in a consolidative manner, hitting 0.6780 and staying slightly below it. Overall, AUD/CHF is trading above a tentative upside support line taken from the low of October 29th, and thus, we would consider the near-term outlook to be positive for now.
A strong break above 0.6780 would confirm a forthcoming higher high and may extend the recovery towards the 0.6814 level, defined as a resistance by the high of December 31st, 2019. If that level is not able to stop the bulls, we may see the rate climbing higher, towards the 0.6840 area, marked by the high of December 12th, 2019.
Taking a look at our short-term oscillators though, we see signs of slowing upside speed. The RSI turned down after it hit its 70 line, while the MACD, although above both its zero and trigger lines, has also turned south. This means that the rate may correct lower before the bulls decide to take the reins again. A dip back below 0.6748 may confirm the case and perhaps target the 0.6717 barrier, or the aforementioned upside line.
However, in order to start examining a bearish reversal case, we would like to see a decisive dip below 0.6653, a support marked by the lows of December 15th and 21st. This would take the rate below the upside line and also confirm a forthcoming lower low. The bears may get encouraged to push the battle towards the 0.6597 zone, or the 0.6579 barrier, which is the low of December 8th. Another break, below 0.6579, may pave the way towards the low of November 9th, at 0.6542.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.57% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.