Weekly Trading Signal: AUDCHF

AUDCHF: SELL

The price on the AUDCHF is embroiled in some determined bearish outlook as explained below. In the past several weeks, the market was in some clearly defined bullish mode, going upwards (though the upward journey was orchestrated by some temporary pullbacks). For instance, between January 14 to January 18, 2013, the price moved upwards by roughly 200 pips. Since there is no such thing as an everlasting trend, the price was bound to stall and start plummeting. On January 24, the price closed below the EMA 56, after crossing it to the downside. At this time, the RSI period 14 also crossed below the level 50, remaining below that level since then. This week, the market has been in a bearish bias – something that is expected to continue. A long trade is not recommended right now on AUDCHF: what is on the chart is a ‘sell’ signal. Should the demand territory at 0.9600 get broken to the downside, the next target would be the demand territory at 0.9500. However, this does not rule out some transient short-term rallies.

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