AUD/CHF price-analysis: bullish towards 0.6770
AUD/CHF price-analysis: with a return to risk-on sentiment, we look for a continued move to the upside towards 0.6770
Market highlights from the past week
Thursday October 1: The National Bank will remain wary over the deflation threat and wary over franc appreciation.
Friday September 2: The NAB business confidence data recorded an increase to -4 from -8 previously, with conditions improving.
Monday September 5: The Australian dollar failed to make headway after the neutral Reserve Bank decision and dipped ahead of the budget statement.
Tuesday September 6: The Australian government proposed tax cuts and spending increases in the budget to help support the economy with the fiscal-year budget deficit forecast at 11 per cent of GDP.
Wednesday September 7: risk appetite recovered some ground on Wednesday amid hopes for targeted fiscal US support measures.
Let’s have a look at the technical viewpoint:
Monthly: with risk-off sentiment, AUDCHF traded to a multi-year low of 0.5341 in March 2020. For the last three months we have posted inside candles highlighting indecision at current levels.
Weekly: 16 inside weeks. The trend of lower highs is located at 0.6690.
Daily: trading within a large symmetrical triangle formation. Trend line support is seen at 0.6499. Trend line resistance 0.6700.
Intraday four-hour: support is seen at 0.6508. We have seen a reaction higher from 0.6511. To the upside, we have a Fibonacci confluence area at 0.6770. This is:
What is your sentiment on AUD/CHF?
1. A 1.272% extension of 0.6493-0.6712.
2. A 2.24% extension of 0.6493-0.6617.Outlook: with a return to risk on sentiment, we look for a continued move to the upside towards 0.6770.
Possible trade set-up:
Action: buying at the market (currently 0.6574)
Potential return on risk to first target: R2.7 (reward 200 / risk 74)
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