The AUDCHF has been moving this week above the key trend line running from the June 2016 low. However, in the week ending on August 10th, the course closed under the support i.e. trend line.
The last week’s rebound leads back to the broken trend line, which is now a resistance. In addition, as can be seen on the daily chart below, the line coincides with horizontal support within 0.7306 and a 20-day SMA, which can act as a dynamic resistance.
If the quotes respect the confluention of resistances, the rate may continue to decline after reflection. The next goal in this scenario will be the last week’s minimum, and the next, key support will be found near the low from 2017 at 0.7132.