Tickmill

CHFAUD approaching resistance, potential drop!

Short
FX_IDC:CHFAUD   SWISS FRANC / AUSTRALIAN DOLLAR
CHFAUD is approaching our first resistance at 1.3468 (horizonal overlap resistance, 61.8% Fibonacci retracement , 61.8% Fibonacci extension ) which coincides with our short term descending resistance line. A strong reaction might occur below this level, pushing price down to our major support at 1.3339 (horizontal swing low support, 50% Fibonacci retracement ).
Stochastic (89,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.
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This analysis is provided as general market commentary and does not constitute investment advice.