AUDCHF in daily time frame has been rigidly following its norms within our dovish channel creating lower lows but failing breakout of the channel with any commitment towards entertaining buyers. The data from commitment of traders has also been favoring positions more in terms of bears due to Aussies weakness which swiss franc has ultimately been utilizing to provide momentum to European market makers. But now if you pay a bit more attention to larger time frames as in 'weekly' and 'monthly', its just a correction from every aspect, the actual control has been shifted to Australian dollar and the weekly time frame suggests that this is the final leg of correction wave 'c'. On another note if we notice monthly chart, its the 4th wave which is a reversal and the market makers are just pulling the strings a bit more to fill the order book and the pair will be launched towards its final 5th impulsive wave with highest high under daily time frame. This will eventually result in new highs under weekly charts while monthly will provide us with a next stop somewhere near 0.73761. So what do we have in the current market scenario for intra day and retail traders for now.

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

As we know that AUDCHF is strongly bullish on the large time frames like weekly and monthly, even daily (excluding the bearish channel), it has made a daily support at 0.68200 while trading near daily and monthly pivot. We are expecting a final leg or a bearish extension towards 0.67500 if the daily resistance of ours is broken. On the current note we will be watching our daily resistance to be breached at 0.68600 which will confirm our next stop at 0.68760 or so called weekly pivot. Our daily price actions breakout will determine that the final destination under H4 time frame will be 0.69330 where monthly pivot is situated. As long as AUDCHF stays within the channel do not execute any long term hawkish trades on the pair for 61.8%fibb and 50% fibb are situated near the channels breakout which might provide a short term bearish momentum to the pair so we will stay within the aforementioned levels unless an impulsive breakout of a higher degree is formed. 

AUDCHF Hawkish Mood but Bears will take over

Jul 13 2021