AUD/CHF might be done with its slide, as the pair is forming a double bottom that looks ready to play out.
Do you think we’ll see a big rally soon?
Better keep your eyes on these levels if you’re hoping to catch a break higher!
As you can see from the chart above, this forex pair made a couple of failed attempts to break below the .5875 area.AUD/CHF is now testing the resistance just slightly above the .6000 major psychological mark, and a break above this neckline would confirm that a rally is due.
In that case, price could climb by roughly the same height as the chart pattern.
That’d be 150 pips yo!
Just be careful since Stochastic is already indicating overbought conditions or exhaustion among buyers. Turning lower would confirm that sellers are returning, possibly leading AUD/CHF to dip back to its previous lows.
Also, the 100 SMA is still below the 200 SMA to confirm the presence of bearish vibes. Then again, the pair has been able to climb above the 200 SMA dynamic inflection point as a verrry early signal of a change in trend.
Don’t forget to check out the average AUD/CHF daily volatility when setting entries and exits!