From the weekly and daily perspective, the price has broken the major resistance level and continue to push to the upside, but from the longer-term perspective, move to the downside is expected, because the overall trend is still bearish according to the higher timeframe.
From the COT perspective, hedge funds are bearish bias on the AUD and bullish bias on CHF, more longs are closed and more short had opened on AUD perspective, in this case, AUD should be weak and AUDCHF should push to the downside.
The proper way to approaching this pair are waiting for the price break below the major level and waiting it become previous support turned resistance again, then I will switch to 4H time-frame waiting for the market shift to the bearish environment then I will take a nice short on AUDCHF with a good RR. On the other side, price may pull back and retest the major level to grab some liquidity and continue push to the upside, so shorting now is not the proper way, because the overall environment is still bullish on the lower timeframe.
Always reactive to the market instead of predictive it, this analysis is based on technical and COT perspective.
Comment down below let me know your thought on AUDCHF.
From the COT perspective, hedge funds are bearish bias on the AUD and bullish bias on CHF, more longs are closed and more short had opened on AUD perspective, in this case, AUD should be weak and AUDCHF should push to the downside.
The proper way to approaching this pair are waiting for the price break below the major level and waiting it become previous support turned resistance again, then I will switch to 4H time-frame waiting for the market shift to the bearish environment then I will take a nice short on AUDCHF with a good RR. On the other side, price may pull back and retest the major level to grab some liquidity and continue push to the upside, so shorting now is not the proper way, because the overall environment is still bullish on the lower timeframe.
Always reactive to the market instead of predictive it, this analysis is based on technical and COT perspective.
Comment down below let me know your thought on AUDCHF.