Awaiting breakout on AUDCHF - H and S and Triangle forming
A Client asked me my opinion on a Trade so I thought i would take the time to provide a full mark up and analysis for him on the pair in order to give him the best possible chance of success.
AUDCHF is at a very interesting level, as it is showing potentially multiple technicals in this supporting either a bullish or bearish move, but we must await confirmation.
Analysing the Daily Timeframe is showing a potential Head and Shoulder Strategy but as we can see the Neckline is holding very strong, price action is also showing us Bullish candles to the upside. In order for this H&S to be executed we would want to see a break of the neckline with the daily candle closing below. can enter in on the retest.
Also we are seeing a Triangle formation form, so once we see a close above the triangle we would go long on the pair,
If it does close below then that would support a short move
Moving down to the RSI on the daily, that is showing slight signs of higher highs and higher lows. So stance would be bullish - especially with the USD strengthening 24 hours after North Korea latest missile launch - This has always caused the support of CHF weakness. The SNB would of started getting very concerned with how strong the CHF was getting against the dollar so this will provide relief to them and the market if it started to weaken.
AUDCHF is at a very interesting level, as it is showing potentially multiple technicals in this supporting either a bullish or bearish move, but we must await confirmation.
Analysing the Daily Timeframe is showing a potential Head and Shoulder Strategy but as we can see the Neckline is holding very strong, price action is also showing us Bullish candles to the upside. In order for this H&S to be executed we would want to see a break of the neckline with the daily candle closing below. can enter in on the retest.
Also we are seeing a Triangle formation form, so once we see a close above the triangle we would go long on the pair,
If it does close below then that would support a short move
Moving down to the RSI on the daily, that is showing slight signs of higher highs and higher lows. So stance would be bullish - especially with the USD strengthening 24 hours after North Korea latest missile launch - This has always caused the support of CHF weakness. The SNB would of started getting very concerned with how strong the CHF was getting against the dollar so this will provide relief to them and the market if it started to weaken.