Hello traders! AUD/CHF seems to have completed an ABC correction, based on the Elliot Wave Theory. There was a rejection of the two Fibonacci resistance levels today. The first is 38.2% Fibs, which was applied to the third wave. The second is the 327.2% Fibs, which was applied to the corrective move up after price broke below the 50 Exponential Moving Average. Both of these levels are located between 0.6465 and 0.6471. Along with the Fibonacci rejection, the price bounced off the 50 EMA at the same time.
If AUD/CHF will fail to break and close above today’s’ high, the downtrend continuation should be expected. The final and the fifth wave could take the price down to 0.6270 support level, which is confirmedly 427.2% Fibs and equals in length to the first wave.
On the upside, 1h and/or 4h break and close above 0.6480 high, will invalidate bearish forecast and price is likely o move up, towards the 0.6600 psychological as well as technical resistance level.
Bias: Strongly bearish while below 0.6480
Potential Resistance Zone: 0.6465 – 0.6480
Potential Targets: 0.6270
Have a profitable trading!