AUD/CHF formed an extremely strong support around 0.7150, where it bounced off for at least 5 times. This support was broken on June 8 confirming bearish sentiment. Currently, the pair is testing the previous key support, which is now acting as a resistance.
Price rejected the 200 Moving Average for 3 times that should result in a further decline. At the same time, the downtrend trendline has been also rejected, confirming the downtrend.
Consider selling AUD/CHF around 0.7150 targeting 161.8% Fibonacci retracement level applied to a low reached on May 29 and a high hit on June 3. Only a break above R1 (0.7186) could push the pair higher to test R3 (0.7228) level.
Support: 0.7149, 0.7052
Resistance: 0.7186, 1.7209, 0.7227
The material has been provided by InstaForex Company – www.instaforex.com