- AUD/CHF is aligned for a break and possible retest of the current resistance.
- Bulls will be able to catch wave 3 of a 1,2 and 3 wave analysis if price action respects market structure.
AUD/CHF has positioned in a bullish environment which enables the paid to be on a high priority watchlist as all it now needs is a break of current resistance in order to set the wheels in motion for a trade setup.
The following is a top-down analysis of the market structure which gives rise to a bullish bias and high probability trade set up for a 1:3 risk to reward ratio, (R/R).
As can be seen, while the price is moving close to a supply area, there is still room to the upside with the market holding above support.
On the weekly chart, the price has been rejected on the first attempt to break higher last year, but over a number of months, the bulls have stayed on the right side of the market.
The weekly support is plain to see and a subsequent rally has seen a 50% Fibonacci retracement which may well be the start of a new impulse to the upside.
The daily chart offers a clearer illustration of the bullish prospects.
As can be seen, the price needs to break the resistance on the 4-hour chart and a restest of the structure which would be expected to turn support offers scope for a 1:3 R/R buy limit set up.