Hello traders! On the 3-hour chart, we can see how triangle pattern breakout has played out. During the past 4 trading days, AUD/CHF exchange rate has increased by 340 pips and this was very rapid growth.
The uptrend was stopped by 327.2% Fibonacci retracement level, applied to the corrective wave down after price broke above the triangle. We already start seeing some pullback, although it could turn to be quite a strong correction.
Based on the previous level of resistance and 88.6% Fibonacci retracement level, the key support is seen at 0.6408, which is very close to the 0.6400 psychological level. At the same time, it corresponds to the 200 Exponential Moving Averages, making it a perfect downside target for this correction.
In regards to the upside potential, if the price will break and close above 0.6712, the uptrend is highly likely to continue and of course, the expected strong correction down will be canceled.
Bias: Bearish while below 0.6712
Potential Resistance Zone: 0.6700 – 0.6675
Potential Targets: 0.6412
Have a profitable trading!