AUD/CHF Price Analysis: Bulls looking set for 1:3 R/R on break of resistance structure
- AUD/CHF is aligned for a break and possible retest of the current resistance.
- Bulls will be able to catch wave 3 of a 1,2 and 3 wave analysis if price action respects market structure.
AUD/CHF has positioned in a bullish environment which enables the pair to be on a high priority watchlist as all it now needs is a break of current resistance in order to set the wheels in motion for a trade setup.
The following is a top-down analysis of the market structure which gives rise to a bullish bias and high probability trade set up for a 1:3 risk to reward ratio, (R/R).
Monthly chart
As can be seen, while the price is moving close to a supply area, there is still room to the upside with the market holding above support.
Weekly chart
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On the weekly chart, the price has been rejected on the first attempt to break higher last year, but over a number of months, the bulls have stayed on the right side of the market.
The weekly support is plain to see and a subsequent rally has seen a 50% Fibonacci retracement which may well be the start of a new impulse to the upside.
Daily chart
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The daily chart offers a clearer illustration of the bullish prospects.
4HR chart
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As can be seen, the price needs to break the resistance on the 4-hour chart and a restest of the structure which would be expected to turn support offers scope for a 1:3 R/R buy limit set up.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
