AUD/CHF travels in downtrend channel – price rejection at 0.7548
Monthly Technical Watch:
AUDCHF bearish swings have been a slant decline, it forms downward channel with a distance of around 1700 pips (see blue circled area where a big bearish candle with big real body measures the distance of the channel almost accurately).
As and when the pair has rejected several times at the channel resistance bears have evidenced considerable dips towards channel baseline.
And again it has witnessed supports at such juncture to bounce back again (see yellow colored circles).
So contemplating the previous long term downtrend, we think this pair had taken a brief pause in last 2 months while a slight recovery took place, bounces from last month's lows of 0.6532 to this month's highs of 0.7548 levels where bears have begun being alert to push southwards way below 21DMA.
In between this phenomenon it confirms us the clear bearish trend to prolong.
It can't be deemed as the pair continues to flow in the same direction but instead its long lasting loses hold sturdy in near future.
The current prices have fallen well below moving averages and both leading indicators (RSI & stochastic curves) have reached oversold zones but no clear trace of buying interest. This would boost up the long term bearish trend to prevail.
AUDCHF bearish swings have been a slant decline, it forms downward channel with a distance of around 1700 pips (see blue circled area where a big bearish candle with big real body measures the distance of the channel almost accurately).
As and when the pair has rejected several times at the channel resistance bears have evidenced considerable dips towards channel baseline.
And again it has witnessed supports at such juncture to bounce back again (see yellow colored circles).
So contemplating the previous long term downtrend, we think this pair had taken a brief pause in last 2 months while a slight recovery took place, bounces from last month's lows of 0.6532 to this month's highs of 0.7548 levels where bears have begun being alert to push southwards way below 21DMA.
In between this phenomenon it confirms us the clear bearish trend to prolong.
It can't be deemed as the pair continues to flow in the same direction but instead its long lasting loses hold sturdy in near future.
The current prices have fallen well below moving averages and both leading indicators (RSI & stochastic curves) have reached oversold zones but no clear trace of buying interest. This would boost up the long term bearish trend to prevail.
