By: John Ursus
Timeframe: W1 Recommendation: Long Position
Entry Zone: 0.7900 – 0.7950
Take Profit Zone: 0.8600 – 0.8630
Stop Loss Zone: 0.7600 – 0.7650
The AUDCHF has corrected sharply over the past few trading weeks and broke down below key support levels which have now been turned into solid resistance. This currency pair is currently trying to stabilize which could lead to a rally in order to test the new resistance levels.
Selling pressures faded away inside its support zone and the AUDCHF already broke out above this zone which is another bullish sign. Should this currency pair be able to maintain current levels a short-covering rally could lead to a reversal.
