AUD/CHF has taken a chill pill after making lower highs and lower lows for more than a month.
Is the pair seeing the bend at the end of its downtrend?
We’re looking at the 4-hour chart for trading opportunities.
AUD/CHF 4-hour Forex Chart by TV
AUD/CHF has been trading in a downtrend since mid-June when the pair got rejected at the .6150 minor psychological level.
But after weeks of making lower highs and lower lows, AUD/CHF has made a higher high AND broke above a descending channel pattern.
Is AUD/CHF in for a reversal?
The pair found resistance at the .5750 zone and is testing the .5700 psychological area.
If AUD/CHF’s breakout is legit, then we may see some buying around the .5675 inflection point and 100 SMA levels before AUD/CHF extends its upswing.
Make sure to keep your eyes peeled for bullish candlesticks near the area of interest if you’re considering long positions for AUD/CHF!
Targeting the .5750 previous high may work for AUD/CHF bulls, but you can also scale in and aim for higher areas of interest like .5850 or .5900 if there’s enough bullish momentum.
Feel like AUD/CHF isn’t over just yet?
You can also take advantage of the current bearish momentum and target previous lows near .5615 if you’d rather trade with the current trend.
Good luck and good trading this one!