AUD/CHF traded lower on Monday, after hitting resistance fractionally below 0.6585. The slide was stopped near the 0.6525 zone, and today, the rate consolidated near that barrier. Overall, the pair continues to trade in a sideways manner, between 0.6490 and 0.6585, and thus, we will consider the near-term outlook to be neutral for now.
In order to start examining the bullish case, we would like to see a strong break above the range’s upper end, at 0.6490. Such a move would confirm a forthcoming higher high and may initially aim for the high of June 16th, at 0.6620. If the bulls are not willing to stop there, a break higher may see scope for extensions towards the peak of June 10th at 0.6660. Another break, above 0.6660, could carry larger bullish implications, perhaps setting the stage for the high of the day before, at around 0.6740.
Looking at our short-term oscillators, we see that the RSI stands slightly below 50, but points east, while the MACD is flat near both its zero and trigger lines. Both indicators suggest a lack of directional momentum, which enhances even further our choice to stay sidelined for now.
On the downside, a dip below 0.6490 is needed before we start assessing whether the bears have gained the upper hand. This would signal the downside exit out of the range, and may initially aim for the 0.6455 or 0.6430 levels. If the slide does not end there, then the next stop may be near the 0.6370 territory, which provided strong support between May 27th and 29th.
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
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. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group 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 Group prohibits the duplication or publication without explicit approval.
72,99% 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: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.