FX.co ★ Technical analysis of AUD/CHF for January 06, 2016

After a heavy downtrend, AUD/CHF found the bottom at the 0.7045 level and slowly started to move higher. The first resistance at 23.6% Fibonacci was rejected several times, but eventually the price broke above and found the resistance at 50% Fibs.

The most recent wave down stopped right at the previous level of resistance (S1) where it found a support that has been rejected on January 4. Currently, the price is retesting this level of support and the lower trend line of the ascending channel. If the price holds the current support, it could be the starting point of another wave up to retest R2.

Consider buying AUD/CHF if the daily close is above the ascending channel targeting the R2 (0.73) area. Stop loss could be placed just below the strong psychological support at 0.7000.

Support: 0.7160

Resistance: 0.7240, 0.7300, 0.7350