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FxWirePro: AUD/CHF baffles, bulls attempt to break channel resistance – price rejection may target 0.7064 region

We get a sense of alert today after AUDCHF rejecting channel resistance at 0.7266 on daily charts, currently hanging around one more resistance at 0.7210 levels (at the time of articulating).

These bearish swings have been a slant decline on both daily and monthly charts, the relevant resistance and support levels within this downward channel are properly correlated with the leading oscillators. So, we don't observe any considerable deviation whenever it hits the channel resistance and supports.

As and when the pair has rejected several times at the channel resistance bears have evidenced considerable dips towards channel baseline. And it has witnessed supports at such juncture to bounce back again (see yellow colored circles).

So contemplating the previous 2 month's uptrend, we now reckon that this pair had taken a brief pause in last 2 months while dips taking place again, dips from last month's highs of 0.7548 to this month's lows of 0.6806 levels where bears have begun being alert to push southwards way below 21DMA on monthly.

In between this phenomenon it confirms us the clear bearish trend to prolong as we synthesize both analysis in different time frames.

So, even if it bounces little upward you can't deem this as continues flows in the same direction but instead its better shorting opportunities as long lasting loses hold sturdy in near future for the southward targets at 0.7064.

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