Rationale: AUDCHF's steep decline seems to have petered out in two ABCD patterns with failed CD legs. A bullish AB rally followed, which could yield CD follow-through taking AUDCHF across the blue ML, back into it's preferred upper half of the better-validated blue fork, to sliding parallel resistance or beyond.
Disclosure: I'm a newbie & I just made this up. Feedback welcome & best of luck :)
Comments
cryptoyoda
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The rally is now technically impulsive (cleared red line) , and through of CD midpoint resistance (green). But it looks sluggish compared to recent AUDCHF impulsive moves and cleared an obvious recent high; I think a slight pullback is likely. Worth following on hourly or lower chart.
cryptoyoda
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AUDCHF has rebounded within the confines of two battling pitchforks since late 2008. In the red corner, a modest downward slope. In the blue corner, a modest upward slope. The first treats the runup in AUDCHF, due to loose world monetary policy, expanding Chinese raw material demand, and increasing risk appetite in 2003-08 as the action, and 2008's the collapse the reaction. The second sees the collapse as the action, and the swift return of all of the above due to the concerted, exhorbitant monetary (and in places fiscal) policy response that followed as the reaction.
Story-telling aside, the blue upward sloping fork seems better validated.
ForceFollower
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Yeah, the blue one is better, but both forks are good enough. What makes me go long here though, is that the highs get taken out.
cryptoyoda
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Would you focus on highs relative to the slope, or absolute highs?
ForceFollower
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Here I'm referring to the downsloped ones. But as you can see, there's still one left to be taken.
cryptoyoda
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I can only see one (recent) high that was taken out though (on a level or slope...)