AUD/CHF price analysis: rejects the 61.8 per cent Fibonacci

AUD/CHF price analysis: with the rejection at 61.8 per cent and the Ending Wedge pattern, the outlook is bearish. We look for limited rallies

AUD/CHF price analysis                                 

Market highlights from the past week

Friday July 10: risk conditions eventually strengthened on Friday despite unease over US coronavirus cases with a favourable trial report for the the drug remdesivir boosting sentiment

Monday July 13: risk conditions also held firm for most of Monday before dipping as the imposition of fresh lockdown measures in California helped trigger a slide in confidence

Tuesday July 14: Swiss National Bank chair Jordan reiterated that forex interventions are the most effective instrument to curb the Swiss franc

Wednesday July 15: risk appetite held firm on Wednesday with expectations of progress towards developing a coronavirus vaccine providing support

Thursday July 16: there was caution ahead of Friday’s EU Summit meeting with increasing pressure for recovery-fund agreement

AUD/CHF: a great cross to play short for risk off. We have a high yielding currency (AUD) by a safe haven (CHF)

AUD/CHF price analysis

Let us have a look at the technical viewpoint: 

Monthly: with risk off sentiment, AUD/CHF traded to a low of 0.5342 in March. We have seen a recovery of 26.24 per cent to date. Monthly resistance is seen at 0.6593

Weekly: we have seen mixed trading for the last five weeks. Posted indecisive Inside Soldiers

Daily: we can note a five-wave pattern to the upside. From an Elliott Wave perspective, we should now be in the corrective three-wave pattern lower. We have a 50 per cent pullback level at 0.6037 (from 0.5342-0.6740). Previous swing low is located at 0.6065. 

What is your sentiment on AUD/CHF?

0.63505
Bullish
or
Bearish
Vote to see community's results!

A screenshot of a computer
Description automatically generated

Intraday four-hour: levels close to the 61.8 per cent Fibonacci have found sellers. This could also be seen as an Ending Wedge pattern. A break of support at 0.6520 and the measured move target is 0.6424

A picture containing monitor, television, screen, video
Description automatically generatedOutlook: with the rejection at 61.8 per cent and the Ending Wedge pattern, the outlook is bearish. We look for limited rallies 

Possible trade set-up: 

Action: selling at the market (0.6576)

Stop: 0.6636 (above 61.8)

Target: 0.6065 (medium-term support)

Potential return on risk to first target:  R8.5 (reward 511/risk 60)

Risk Warning - Your capital is at risk - Losses can exceed deposits

Trading spot foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. If you are in any doubt about investment or the mechanics of such products, you should seek independent financial advice

Australian Dollar / Swiss Franc
Daily change
0.6348
Low: 0.63075
High: 0.63505
The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image