AUD/CHF reaching a confluence zone

FOREXCOM:AUDCHF   Australian Dollar / Swiss Franc
I have to credit user BenWright21 with this idea:

Currently, the daily time frame is in the midst of a H & S pattern and has seen nice follow through the .718 level. If price continues to climb, the .7325 zone is the level to watch for a pull back. Not only do we have a sizable gap zone from Dec 2nd, it also happens to coincide with a massive downward trend line (see weekly for more detail).
The Ozzie had a strong showing this week thus far, but remains fundamentally weak. Yes, Chinese PMI and Australian CPI did beat consensus estimates, but the overall forecast remains uncertain at best for the currency. Feb 4th will surely provide volatility and direction with the release of the RBA's interest rate decision. Meanwhile, the CHF was slammed on the news front this week, hitting below expectations on the KOF indicator and ZEW survey reports. The Swissy is down broadly this week barring an end of the week push.
In summary, I expect an AUD sell off next week all things remaining equal. The nearest supply/demand zone ranges are wide, so patience will be necessary. Wait for confirmation @ the .7325 zone to the downside and execute a sell. Assuming .7325 is your average price you can set stop losses @ or between the .737 - .74 levels depending on your tolerance. If everything goes correctly, you could be eyeing over a 300 pip move with a generous R:R.

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