Loading...
by Charalambos Pissouros

AUD/CHF Trades Within a Sideways Range

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.

AUD/CHF 4-hour chart technical analysis

 Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

75% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT