AUDCHF : BULLISH TREND NO LONGER VALID
Australian Dollar vs Swiss Franc ACTIVTRADES:AUDCHF
ActivTrades
- AUDCHF has been trading within a bullish channel between February and April ; the mid-term trend was then bearish.
- Since mid-April, prices have registered a significant pull-back to a new low, far below the lower bound of the bullish channel.
The mid-term trend is now no longer valid.
However, a sharp rebound occurred above the 50% Fibonacci level, bringing prices back to 0.5965 just below the previous bullish channel.
Judging by today's candle, it seems the market's control remains in sellers' hands.
Both EMA are bullish, confirming the recent rebound, but the Stochastic is registering a bearish cross inside its overbought zone.
- This is not the easiest situation to analyze.
The bullish trend is clearly not valid anymore, but the sharp rebound over 0.5800 tells us there are still numerous buyers in this market.
A failure to clear the 0.5965 level could dangerous on the short-term basis, leading the market back to 0.5915, 0.5862, 0.5807 and even below in the case of a "failure swing" situation.
Pierre Veyret, Technical Analyst at ActivTrades
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