AUD/CHF has been trading in a recovery mode yesterday, after it hit support near the crossroads of the psychological round number of 0.7000 and the upside support line drawn from the low of January 28th. Today, the pair broke above yesterday’s high of 0.7125, which suggests that the buyers have stayed in the driver’s seat. Thus, we will adopt a bullish stance for now.
In our view, the move above yesterday’s high of 0.7125 may have opened the way towards Thursday’s high of 0.7260. If that barrier is not able to halt the advance, its break will confirm a forthcoming higher high on the daily chart and may set the stage for extensions towards the peak of December 3rd, 2018, near the 0.7375 area.
Taking a look at our short-term oscillators, we see that the RSI has recently rebounded from near its 50 line and continues to point up, while the MACD, already above its trigger line, has just turned positive. Both indicators suggest that the rate may have started gaining upside speed again, which enhances the case for more advances.
In order to abandon the bullish case, we would like to see a clear dip below 0.7000. This would confirm a forthcoming lower low and will also place the pair below the aforementioned short-term upside line. The bears may push the action towards the low of February 18th, at 0.6940, the break of which may allow extensions towards the low of the day before, at 0.6910. There, the rate may also test another upside support line, a medium-term one, drawn from the low of October 20th.
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. 79.07% 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 2021 JFD Group Ltd.