On the daily chart, the AUD/CHF has rejected the downtrend trendline along with the 88.6% Fibonacci retracement level at 0.6700. This was a second clean rejection of the 88.6% Fibs, which along with the bounce off the trendline, suggest a potential corrective move to the downside.
Therefore, as long as the price remains below the key psychological and technical resistance at 0.6700, AUD/CHF is expected to decline, towards the 0.6557 support level. This support is confirmed by two Fibs, first is the 50% retracement level of the June - September downtrend, and the second is the 78.6% Fibs applied to the last wave up, which occurred between 6-11 November.
Besides, the downside target also corresponds to the 50 Simple and Exponential Moving Averages as well as the lower trendline of the ascending channel. And finally, Fibonacci cycles applied to the first two points of the ascending channel, show that tomorrow a new cycle will start. This could be a bearish cycle, as technical analysis suggest.
The overall downside move could be just over 100 pips, which is quite a substantial price drop for a currency pair such as AUD/CHF. However, the probability of the uptrend continuation can not be ignored. Daily break and close above the 0.6700 resistance will invalidate a bearish outlook, in which case an uptrend is highly likely to continue.
Key support levels: 0.6600, 0.6556
Key resistance levels: 0.6684, 0.6700
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice
Therefore, as long as the price remains below the key psychological and technical resistance at 0.6700, AUD/CHF is expected to decline, towards the 0.6557 support level. This support is confirmed by two Fibs, first is the 50% retracement level of the June - September downtrend, and the second is the 78.6% Fibs applied to the last wave up, which occurred between 6-11 November.
Besides, the downside target also corresponds to the 50 Simple and Exponential Moving Averages as well as the lower trendline of the ascending channel. And finally, Fibonacci cycles applied to the first two points of the ascending channel, show that tomorrow a new cycle will start. This could be a bearish cycle, as technical analysis suggest.
The overall downside move could be just over 100 pips, which is quite a substantial price drop for a currency pair such as AUD/CHF. However, the probability of the uptrend continuation can not be ignored. Daily break and close above the 0.6700 resistance will invalidate a bearish outlook, in which case an uptrend is highly likely to continue.
Key support levels: 0.6600, 0.6556
Key resistance levels: 0.6684, 0.6700
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice