- AUD/CHF bears lining up for a close below the structure.
- The price action offers the prospects of a downside extension of a daily bearish impulse.
The price of AUD/CHF has made a significant correction of the daily bearish impulse and is ripe for fall below a current 4-hour resistance structure.
The following is a top-down analysis that arrives at a 1:3 risk to reward swing-trading setup:
Monthly chart
-637398774411063943.png)
The price is in the process of a correction which would be expected to extend to at least a 38.2% Fibonacci level on a break below the current support structure.
Daily chart
-637398775261942271.png)
From a daily perspective, the price is in the throes of a downside extension within a correction of the daily impulse.
4-hour chart
-637398775553851726.png)
Moving down to the 4-hour time frame where the price action and market structure can be monitored for a high probability trading set up, old support is expected to have turned resistance.
A sell limit here based on a close below the structure offers a 1: 3 risk to reward trading opportunity towards a -0.272% Fibonacci of the larger and dominant correction of the daily impulse.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
EUR/USD falls toward 1.19 after robust US Nonfarm Payrolls data
EUR/USD is trading above 1.19 after dipping below that number in response to the US Nonfarm Payrolls, which showed an increase of 379K jobs in February. Higher yields in response to Powell are keeping the dollar bid.
GBP/USD recovers after post-NFP dip below 1.38
GBP/USD is trading above 1.38 bus till down the day. The US gained 379,000 jobs in February, roughly double than expected and supporting the dollar. The Senate's stimulus debate is eyed.
XAU/USD remains depressed near multi-month lows on stellar NFP
Gold edge lower during the early North American session and dropped to fresh nine-month lows, below the $1690 level in reaction to an upbeat US jobs report.
Cardano ready to resume uptrend towards $2
Cardano price shows signs of a reversal after a 30% correction. The Tom DeMark Sequential indicator’s buy signal on the 4-hour and the 12-hour chart hints at a continuation of the bull rally.
US Dollar Index pushes higher to 92.20 on stellar Payrolls
The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).