AUD/CHF: 3 Waves Correction In Progress

FX:AUDCHF   Australian Dollar/Swiss Franc
77 0 1
With RBA switching their policy stance into neutral early this year, traders have reduced their expectations for futher interest rate cut from RBA. As a result, AUD has been recovering nicely since early this year. One pair which shows a clear structure to participate in the AUD recovery is AUD/CHF             .

From the high in Aug 2012, we can clearly see five waves down in AUD / CHF. This looks to be a textbook structure of 5 impulsive waves:
1. Wave 3 = 1.618 x Wave 1
2. Wave 5 = Wave 1
3. Wave 5 loss of momentum is confirmed with the RSI divergence at the end of Wave 5

AUD / CHF is likely in 3 waves correction right now. Wave (C) = Wave (A) at 0.87 and this is probably just the first wave A of the three waves ABC correction. Following retracement to wave B later, the pair is likely to resume higher again and likely to target 50% retracement of the whole drop at 0.9015.

Follow my twitter handle for further update of this trade idea and others @cmellon1976
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out