AUD/CHF traded in a quiet mode today, staying slightly above the 0.6600 barrier, which is near yesterday’s low. Overall, the pair has been trading within a sideways range between 0.6500 and 0.6670 since August 5th, and thus, we would consider the short-term outlook to be neutral for now, although the prevailing longer-term trend is still to the downside.
Yesterday, the rate hit resistance at 0.6650 and then, it started slowly to pull back. That said, in order to get confident on larger declines within the aforementioned range, we would like to see a decisive dip below 0.6600. Such a move could pave the way towards the 0.6545 zone, the break of which may allow extensions towards the lower end of the range, at around 0.6500.
Taking a look at our short-term oscillators, we see that the RSI is flat near its 50 line, while the MACD, although fractionally below zero, lies above its trigger line and points east as well. These indicators suggest lack of directional momentum and support our choice to wait for a dip below 0.6600 before we trust further declines.
On the upside, we would like to see a decisive recovery above the range’s upper end, at 0.6670, before we start examining whether the bulls have gained control. Something like that could initially trigger advances towards the 0.6714 level, marked by an intraday swing low formed on August 2nd. If that level proves no obstacle for the bulls, then we may see them putting the high of that day on their radars, at around 0.6740.
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