AUD/CHF traded lower on Wednesday, after it hit resistance near the 0.6820 zone on Tuesday. Overall, the pair has been trading in a trendless mode since September 9th, between 0.6774 and 0.6845, and thus, we prefer to remain sidelined for now. We will start examining the forthcoming directional move after a clear move out of that range.
In case the slide continues, and the bears decide to push below 0.6774, a forthcoming lower low would be confirmed on the 4-hour chart, something that could turn the short-term outlook negative in our view. Such a dip could initially pave the way towards the 0.6730 zone, marked by the inside swing high of September 5th, the break of which may set the stage for the 0.6690 territory, marked by an intraday low formed on the same day.
Looking at our short-term oscillators, we see that the RSI lies flat near its 50 line, while the MACD stands slightly above zero, fractionally below its trigger line, and points east as well. These indicators suggest lack of directional speed and support our choice to remain sidelined until the pair escapes from the aforementioned range.
On the upside, a decisive break above 0.6845 may signal the continuation of the prevailing short-term uptrend and could encourage the bulls to drive the battle towards the 0.6900 barrier, near the peak of July 25th. If that hurdle is not able to halt the advance, then we could see extensions towards the 0.6925 zone.
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.
75% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.