Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

AUD/CHF Trades Within Upside Channel

ByJFD Team
Published 04/13/2020, 07:52 AM
Updated 07/09/2023, 06:31 AM
AUD/CHF
-

AUD/CHF traded in a consolidative manner during the European morning Monday, staying fractionally below the 0.6150 area. Overall, the rate has been trading within an upside channel since March 19th, and thus, we would consider the near-term outlook to be positive.

A clear break above 0.6150 may target the 0.6220 zone, marked by the lows of February 2nd and March 2nd, or the upper bound of the channel. The bulls may decide to take a small break thereafter, thereby allowing the rate to correct lower, perhaps to challenge the 0.6025 support, or the lower end of the channel. That said, as long as the pair would be still trading within the channel, we would see decent chances for the bulls to jump back into the game and aim for areas above the 0.6220 barrier. They may put the channel’s upper bound back on their radars, or the 0.6350 territory, marked by the highs of March 4th and 5th.

Shifting attention to our short-term oscillators, we see that the RSI lies slightly below 70 and has turned back up, but the MACD, although well into positive grounds, stands below its trigger line and points south. Both indicators detect upside speed, but the topping of the MACD supports the notion for a pullback, at least within the channel, soon. Perhaps after the rate challenges the 0.6220 level, or the upper end of the channel.

On the downside, we would like to see a decisive dip below 0.5950 before we start examining whether the bulls have dropped their weapons. Such a move may confirm the downside exit out of the channel and could initially allow declines towards the 0.5835 territory, which provided decent support between March 29th and April 3rd. Another break, below 0.5835, could extend the slide towards the lows of March 24th and 26th, at 0.5725.
AUD/CHF

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.