Similar to AUD/CAD, AUD/CHF is setting up for a short opportunity with the following in view:
- inside bar following high test bar in pull back to 50ema
- price rejection at resistance at ~0.8210
- price retraced to 0.618 Fibonacci level which coordinates well within proximity of resistance at ~0.8210
- Stochastic and RSI in overbought territory
- Stochastic and...
Confluence of factors for short set up:
- resistance at ~0.9590 (also weekly resistance)
- inside bar formation in pull back below resistance
- 0.786 Fibonacci retracement/rejection
- hidden divergence (bearish trend continuation)
entry - below low of inside bar
stop loss - above mother bar
target - previous swing low or 1.272 Fibonacci extension
A low test close on CHF/JPY presents an opportunity for a long position. Today's low test price bar has tested the 114.70 level and is likely to close above it as well as above the 50% retracement and the 20 ema. There is, adding to this setup, supportive hidden bullish divergence (trend continuation divergence). The Stochastic indicator is in oversold territory...
