AUD/CHF - Bearish Outlook Near Key ResistanceOverview:
The AUD/CHF currency pair is currently encountering a significant resistance area, coinciding with the formation of an XABCD harmonic pattern. This convergence suggests a potential bearish movement in the near future.
Entry Point:
Consider initiating a short position near the level of 0.59700. This entry point aligns with the technical resistance and the anticipated bearish momentum.
Stop Loss:
Place a stop loss order at approximately 0.59962 to mitigate potential losses in case of a reversal or unexpected market volatility.
Take Profit Levels:
1. TP-1: Set the first take profit target at 0.59462 to capture initial downward movement and secure profits.
2. TP-2: Aim for the second take profit level at 0.59220 to capitalize on further bearish momentum.
3. TP-3: The third take profit target is located at 0.58970, reflecting a deeper potential decline in price.
Risk Management:
It is essential to adhere to proper risk management principles, ensuring that the risk-to-reward ratio is favorable for each trade. Adjust position sizes accordingly to align with individual risk tolerance and overall trading strategy.
Market Monitoring:
Continue to monitor the AUD/CHF pair closely for any signs of reversal or deviation from the anticipated bearish trajectory. Adjust stop loss and take profit levels accordingly as the trade progresses.
Conclusion:
Based on the technical analysis and the identified resistance area along with the XABCD harmonic pattern formation, a bearish outlook is favored for the AUD/CHF currency pair. Exercise prudence and discipline in executing the trade plan outlined above, while remaining vigilant to market dynamics and potential developments.
