AUD/CHF 1H Chart: Stranded in two channels
The Australian Dollar has been trading in two channel against the Swiss Franc. Both downward-sloping patterns are gradually moving the pair away from its long-term resistance of 0.78.
If looking in the short term, the Aussie bounced off the lower boundary of both patterns on Wednesday and started to edge higher. However, the strong resistance of the monthly S1, the weekly S2 and the 100-hour SMA provided an unbreakable barrier that reversed the rate southwards once again.
It is likely that the rate re-tests the monthly S2 or the lower boundary of the senior channel at 0.7478 and 0.7460, respectively, prior to initiating a new wave up.
The pair’s movement north is restricted by various weekly pivot points that are located relatively close to each other. However, the most probable resistance area that should be taken into account is the monthly PP at 0.7640 (the 200-hour SMA might likewise be located nearby at the time). If this level is breached, further advance should follow.
If looking in the short term, the Aussie bounced off the lower boundary of both patterns on Wednesday and started to edge higher. However, the strong resistance of the monthly S1, the weekly S2 and the 100-hour SMA provided an unbreakable barrier that reversed the rate southwards once again.
It is likely that the rate re-tests the monthly S2 or the lower boundary of the senior channel at 0.7478 and 0.7460, respectively, prior to initiating a new wave up.
The pair’s movement north is restricted by various weekly pivot points that are located relatively close to each other. However, the most probable resistance area that should be taken into account is the monthly PP at 0.7640 (the 200-hour SMA might likewise be located nearby at the time). If this level is breached, further advance should follow.
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