The AUD/CHF currency pair, on the D1 chart, was in a range with no clear direction from the beginning of February. On the 27th of February a lower top was registered at 0.71696 as sellers found the price attractive and supply started to overwhelm demand. The market broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke the zero baseline, confirming the possible downward direction in the market.
After breaking through the 15 and 34 Simple Moving Averages, buyers tried to prod the market up and the price almost touched the 34 Simple Moving Average before sellers took control again. A cross of the 15 and 34 Simple Moving Averages, also referred to as a Death Cross, added strength to the possible downward momentum.
A strong bearish candle on the 6th of March made a lower low at 0.70483 and this might prove to be a critical support level. If supply continues to overcome demand and the critical support level at 0.70483 is broken, then three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 0.70483 and dragging it to the top of the strong bearish candle at 0.71257, the following targets may be calculated. The first target can be anticipated at 0.70004 (161.8%). The second price target can be projected at 0.69230 (261.8%) and the third and final target might be expected at 0.67978 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the AUD/CHF currency pair will remain bearish.
After breaking through the 15 and 34 Simple Moving Averages, buyers tried to prod the market up and the price almost touched the 34 Simple Moving Average before sellers took control again. A cross of the 15 and 34 Simple Moving Averages, also referred to as a Death Cross, added strength to the possible downward momentum.
A strong bearish candle on the 6th of March made a lower low at 0.70483 and this might prove to be a critical support level. If supply continues to overcome demand and the critical support level at 0.70483 is broken, then three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 0.70483 and dragging it to the top of the strong bearish candle at 0.71257, the following targets may be calculated. The first target can be anticipated at 0.70004 (161.8%). The second price target can be projected at 0.69230 (261.8%) and the third and final target might be expected at 0.67978 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the AUD/CHF currency pair will remain bearish.