AUD/CHF: buy target - 0.7400
By: Dmitriy Chernovolov
- AUD/CHF rises inside minor ABC correction 4
- Next buy target - 0.7400
AUD/CHF continues to rise inside the minor ABC correction 4 – the (a) and the (c) waves of this ABC correction started earlier - when the pair reversed up from the strong support zone surrounding the support level 0.6950. This support zone was strengthened by the lower daily Bollinger Band. The latest two reversals from this support zone created the two daily Japanese candlesticks reversal patterns Morning Star and Hammer.
With the clear bullish divergence visible on the daily Stochastic - AUD/CHF is expected to break the nearby resistance level 0.7250 – after which the pair is likely to rise to the next buy target 0.7400.