By: John Ursus
Timeframe: W1 Recommendation: Long Position
Entry Zone: 0.8250 – 0.8275
Take Profit Zone: 0.8750 – 0.8775
Stop Loss Zone: 0.8000 – 0.8025
The AUDCHF has corrected sharply after it touched its Fibonacci retracement level as visible in this W1 chart. This currency pair is now trading at the upper band of a very strong support zone from where it should be able to stabilize and rally back into its horizontal resistance zone which is enforced by its Fibonacci retracement level.
Given the large support zone traders should account for potential short-term losses before a rebound can be expected. The AUDCHF should spend the next few trading days around current levels and form a bottom from its recent reversal.