AUD/CHF Price Analysis: Daily bear-extension prospects identified for 1:3 R/R

  • 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

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

From a daily perspective, the price is in the throes of a downside extension within a correction of the daily impulse.

4-hour chart

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. 

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