The change in the momentum for the
AUD/CHF pair has been detected; it should result in a corrective wave up.
After the pair bounced from the downtrend trendline, the price broke above
the key resistance R1 (0.7092).
While the bullish divergence has been
formed on longer- and short-term scales, it indicates that
sentiment is changing in bulls favor. At the same time, the price rejected
the uptrend trendline that could be a signal that AUD/CHF is ready to
move higher today or this week.
Consider buying AUD/CHF near R1
targeting either R2 (0.7209) or R3 (0.7272) resistance levels taken
from the Fibonacci applied to the 07.05 low and 14.05 high. One move
lower than S1 (0.7042) could either result in the consolidation or
continuation of the downtrend.
Resistance: 0.7272, 0.7209, 0.7272
The material has been provided by InstaForex Company – www.instaforex.com