AUDCHF - Has A Bullish Falling Wedge Chart Pattern Formed?Analysis:
Looking at the charts we can see that price seems to not know where it wants to go. One minute it's heading to the upside and the next it's heading to the downside. This can make it quite hard to trade during these times but we see a setup occurring on this pair. Price recently has been heading to the downside however we are actually bullish on this pair and we think that a breakout to the upside will occur. Where price is currently we have marked out a strong area of previous support. When this level was touched in the past, we saw a huge strong bullish move happen, so we expect that this will happen again, as key levels tend to hold more then once and this level has be held 3 times, making it a very strong support level. To add to our idea, on the higher timeframe, we can clearly see a bullish falling wedge forming. This is a bullish chart pattern which is often followed by a breakout to the upside so this is what we expect to see happen on this pair as this is the pattern that we have. We're also at the bottom trendline of the chart pattern so we expect that there will be some bullish pressure around this area which will hold price and push it to the upside. All of these technical confluences together line up to give us a bullish bias on this pair but lets take a look at the fundamentals. Fundamentally the AUD is the 2nd weakest major currency whereas the CHF is the 3rd weakest major currency so this slightly goes against our idea, however overall we are bullish on this pair. Tomorrow we have some news coming out for the AUD which could give us the catalyst that we need to see price breakout to the upside. This isn't the best looking setup by any means and it does go against the trend slightly however it's still to our trading plan so it's still valid. It doesn't matter how the setup looks, all that matters is the result. As long as you stick to your trading plan and let your edge play out, you'll be profitable. Not every setup will look perfect and the sooner a trader learns this the sooner they will become profitable.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read and responded to. We any comments at all so thank you!
Stay Safe - The JPI Team
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does too. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
