The Australian dollar to Swiss franc (AUDCHF) has been on the consolidation path since the beginning of this month. As can be seen on the daily chart below, as part of the downward trend, the quotations have fallen to 0.6507, where the minimums of the bullish pin bar falls.
However, the upward movement after this pin bar was not very impressive and the price reached the resistance at 0.6655. This level is now the upper limit of the range.
The trading movement in the range is better illustrated by the 4-hour chart, where, as you can see, buyers for the third time attack a zone in the range of 0.6655. Resistance was maintained on Friday’s closing and can therefore be considered as still valid.
However, after the last rebound from resistance, the price created a higher low, indicating weakening of the sellers. An effective rebound of 0.6655 would give a chance for a deeper, nearly 100-pipes correction of the general downward trend to the area of 0.6750, where the June 2012 minima were located.
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