AUDCHF Choppiness Spells Impeding Breakout

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AUDCHF is approaching the multiyear trendline that started in Aug ’12 once again. The last attempt in June ’20  tipped sentiment over, however, the pair retreated only marginally.

Registering higher-lows suggests that bulls could have found a base near the 0.65 round support. At that level, prices meet the regression low of the ascending channel that started in Mar ’20.

Without signals on the RSI (14) the upside continuation case above the 50 mark looks encouraging. This is despite the pair trading within the lower regression zone as the higher-lows paint a bullish picture in the short-to-medium term.

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Somewhat flat around the psychological support of 0.66, AUDCHF’s short-term structure seems uncertain. This is due to the high activity around the round level.

It is essential to see a breakout of the median regression of the short-term channel that started on June 20.

Should it be to the upside, momentum could drive price all the way up to the TR1 trendline near 0.76. Further clues will be provided near this level. Should it be to the downside, however, the lower regression of the  Mar ’20’s channel will be eyed next.

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