AUDCHF Top-Down AnalysisHello Traders,
Here is the Top-Down Analysis of AUDCHF (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price reached monthly resistance level, previously monthly support that had pushed price down to bearish impulse, faced rejection and started downward move.
W > After rejection price dropped till 0.618 Fib level on last bullish impulse, moved up and is consolidating and retested resistance again thrice. We can see a W formation and expect price to drop till its neck for correction.
D > Price is consolidating in a range of about 100 pips with two breakouts to the upside, testing monthly resistance each time. We saw an M formation and price moved up to test the neck and complete the formation. Price dropped after testing the neck but monthly support pushed it again to the upside. After last retest of resistance price is making HL and LL. Price is now approaching resistance of range and we expect a drop to the downside.
As per COT AUD saw addition of major Long and Short positions, increasing net positions. AXY gained strength during the said week, it improved its position last week. CHF saw closure of both Long and Short positions with Short position reducing to least for current year, increasing net positions marginally. SXY was strong for the said week. SXY further gained strength last week.
4H > Price is now testing resistance level and can approach daily supply zone. We expect a reversal around this zone and will monitor price action for confirmation of reversal.
Pair Correlation > AUDCHF has positive correlation with AUDJPY, NZDCHF, NZDJPY, EURCHF, NZDUSD and AUDUSD and strong negative correlation with EURAUD and USDCAD on daily and weekly timeframe.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
