AUD/CHF may rise 30 - 40 pips

Our pivot point is at 0.5883.

Our preference

The upside prevails as long as 0.5883 is support.

Alternative scenario

The downside breakout of 0.5883 would call for 0.5865 and 0.5855.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 0.5898 and 0.5899). Finally, the AUD/CHF has crossed above its upper Bollinger band (0.5914).

Supports and resistances

0.5992 **

0.5981 *

0.5970 **

0.5960

0.5930 last

0.5891

0.5883 **

0.5865 *

0.5855 **

Number of asterisks represents the strength of support and resistance levels.