AUD/CHF traded lower on Wednesday, after it hit resistance near the 0.6820 zone on Tuesday. Overall, the pair has been trading in a trendless mode since September 9th, between 0.6774 and 0.6845, and thus, we prefer to remain sidelined for now. We will start examining the forthcoming directional move after a clear move out of that range.
In case the slide continues, and the bears decide to push below 0.6774, a forthcoming lower low would be confirmed on the 4-hour chart, something that could turn the short-term outlook negative in our view. Such a dip could initially pave the way towards the 0.6730 zone, marked by the inside swing high of September 5th, the break of which may set the stage for the 0.6690 territory, marked by an intraday low formed on the same day.
Looking at our short-term oscillators, we see that the RSI lies flat near its 50 line, while the MACD stands slightly above zero, fractionally below its trigger line, and points east as well. These indicators suggest lack of directional speed and support our choice to remain sidelined until the pair escapes from the aforementioned range.
On the upside, a decisive break above 0.6845 may signal the continuation of the prevailing short-term uptrend and could encourage the bulls to drive the battle towards the 0.6900 barrier, near the peak of July 25th. If that hurdle is not able to halt the advance, then we could see extensions towards the 0.6925 zone.
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