Embarking on a meticulous analysis of the AUD/CHF currency pair, our attention is drawn to a compelling technical narrative. Notably, the AUD/CHF duo has forged a distinctive double bottom pattern, a resilient bounce from the lows of the 2015 crash pinpointed at 0.5654.
Presently, our focus centers on the consolidation phase etched on the AUD/CHF daily chart, oscillating within the confines of 0.5724 and 0.5964. A breakthrough beyond this range holds the promise of triggering a bullish trajectory for the AUD/CHF on the daily chart, unveiling potential market movements.
This anticipated bullish journey unveils itself with precision targets, all tied to the AUD/CHF pair:
- Primary Objective: 1.272 FIB Extension at 0.6025 (Daily) The initial target of this prospective bullish trend aligns with the 1.272 Fibonacci extension on the AUD/CHF daily chart, strategically positioned at 0.6025.
- Secondary Aspiration: 1.618 at 0.6110 (Daily) Advancing further, our focus extends to the second target at 0.6110, marked by the 1.618 Fibonacci extension on the AUD/CHF daily chart.
- Tertiary Destination: 0.618 FIB Retracement (Weekly) and 0.382 FIB Retracement (Monthly) at 0.6170 The journey reaches its third milestone at 0.6170, encompassing the 0.618 Fibonacci retracement on the AUD/CHF weekly chart and the 0.382 Fibonacci retracement on the AUD/CHF monthly chart.
A pivotal breakthrough above the monthly 0.382 Fibonacci retracement on the AUD/CHF monthly chart acts as a gateway, paving the way for a bullish surge towards the 0.618 Fibonacci retracement on the AUD/CHF monthly chart at 0.6520.
Conversely, a breach below the weekly double bottom support at 0.5607 signals a potential shift in momentum for the AUD/CHF, unlocking the door to a bearish trajectory and a retest of the 2020 low at 0.5344.
In navigating the intricate dance of market dynamics specific to the AUD/CHF pair, staying attuned to these technical nuances empowers traders to make informed decisions. As the AUD/CHF journey unfolds, vigilance and adaptability remain paramount in navigating the complexities of currency analysis.