From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H4/M30.
The AUDCHF currency pair has been moving for a long time in a bearish channel. As a result of rejection of the lower limitation of this formation, since October 2015 we have seen increases which compared with history of this instrument, seem to be less dynamic.
Looking at the weekly chart, we note that for more than two years market has been moving in consolidation, forming a rising triangle, whose upper limit of 0.7750 coincides with a 38.2% retracement of the previous downward
movement and 61.6% of the Fibonacci correction from the last downward impulse.
Also worth noting is the nearby downward trend line, which could support bearish scenario assuming rejection of the current resistance zone and continuation of the decline.
On the 4-hour chart, we will notice that despite ongoing declines from February 23, there has not been a general change of market sentiment and from March 9 we see return to growth. In near future, we expect to be able to test the 0.7750 level again.
Looking on H1 chart, we can see that 0.7726 resistance may be important as it could be at this level that we could expect a first supply response.
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