AUD/CHF traded lower yesterday, falling below the 0.6950 barrier marked by the low of March 25th. However, the slide was stopped near the 0.6895 level, still above the upside support line, drawn from the low of February 24th. With that in mind, we will still treat the latest retreat as a correction, and the broader short-term outlook as still positive.
A clear rebound back above 0.6950 may confirm that the bulls are willing to stay in the driver’s seat for a while more, and perhaps push towards the 0.7025 barrier, marked by the high of March 29th. If they don’t stop there, we may see them aiming for the peak of March 28th, at 0.7068, the break of which could take the rate into territories last seen back in May. The next resistance may be at 0.7100, marked by the high of May 10th, the break of which could extend the advance towards the 0.7142 territory, defined by the highs of April 20th and 26th.
Taking a look at our short-term oscillators, we see that the RSI rebounded from slightly above 30, but the MACD remains below both its zero and trigger lines. Both indicators detect downside speed, by the RSI’s rebound provides a hope with regards to a potential rebound. However, given that this is the only positive sign we have from our momentum studies, we prefer to wait for a break back above 0.6950 before we get confident on a trend continuation again.
On the downside, we would like to see a clear dip below 0.6860 before we start examining the case of a bearish reversal. This could confirm the break below the aforementioned upside line and may initially allow declines towards the 0.6790 zone, marked by the inside swing high of March 15th. Another break, below 0.6790, could extend the fall towards the low of that same day, at 0.6730.
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. 73.82% 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 2022 JFD Group Ltd.