FX.co ★ AUD/CHF about to make a move

The AUD/CHF pair has been trading downwards since April 29. At the same time, the pair failed to reach any new highs, thus confirming the downtrend validity.

It is clear that the rate is heading down within the descending channel. The upper trendline of the channel has been rejected on June 15. At the same spot, the pair rejected the 50% (R2) retracement level, of the Fibonacci applied to a high of 0.7479 hit on May 14 and a low of 0.7060 hit on June 9.

The trend is bearish and could be on the way to trade in the next 48 hours considering sell near R1 (0.7230). The downside target is 161.8% Fibs that is applied to a low of 0.7208 hit on the May 7 and a high of 0.7479 reached on May 14. A break above R2 (0.7277) will invalidate these analysis.

Support: 0.7171, 0.7076, 0.7042

Resistance: 0.7230, 0.7277, 0.7325