AUD/CHF has been moving sideways for over a week now. Taking the Fibonacci applied to the 07.05 low and 14.05 high, after breaking 23.6% support the pair rushed down to test 50% retracement level. The following move was a comeback to test the previous 23.6% level, which became resistance. The resistance has been established near 0.74 and support is seen at 0.735.
Today, the pair has tested the resistance zone once again. It has been rejected again. The Demarker oscillator is signaling on a potential overbought area. At the same time, it is moving within the descending channel that could be a confirmation of the continuation of range trading. If that’s the case, AUD/CHF could start falling to test one of the resistance areas, either 50% or 61.8%.
Consider selling AUD/CHF at the current level with a very tight stop loss, just above the most recent high (0.7421). A target could be at the area between S2 and S3, but it appears that the area of 0.7320 plays the key role and could be used as take profit.
Support: 0.7375, 0.7344, 0.7321, 0.7311
Resistance: 0.7414, 0.7478
The material has been provided by InstaForex Company – www.instaforex.com