The AUD/CHF pair has not only reached a support level that we have to go back literally years to find, but it also shows Bullish divergence with a lower low in price, but a higher low on the stochastic than it did on August 08. The support level at 0.8230 was established in 2002, and price came close again in 2008.
The pair has been falling almost non stop since March and is way overdue for some kind of correction. Resistance to the top side comes into play early at 0.8380, again at 0.8460 and some serious resistance awaits at 0.8550 where the pair established both high’s and lows from June through August. If we were to get a 38.2% retracement, that would put the prices at around 0.8860, which is a solid 600+ pips away...nice carry trade potential here.
On the other side of the preverbal coin, we find that a break below yesterday's low at 0.8175 opens the door for a fall to at least 0.7950.
Happy Trading!