AUD/CHF – Enjoy the Range
December 18th, 2009 Posted in In-Depth Analysis, Technical Analysis
Name: Yan
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On many occasions, traders find themselves a bit confused. The pair seems quite stabile, and significant signals for any kind of trend are nowhere to be found. A perfect example is the current AUD/CHF pair – and here is how you can gain profits from trading with it.
• The chart below is the AUD/CHF 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMa and the Relative Strength Index (RSI).
• For the past few weeks the pair has been range-trading, without making any signs for a clear direction.
• The pair is currently traded around the 0.9275 level.
• The technical indicators are providing mixed signals. Whereas the Slow Stochastic shows a bullish cross, the MACD signals a bearish trend.
• There are several key-levels on the chart. There are 4 levels within the range, and 2 levels that delimit the range.
• The 4 levels within the range are located at: 0.9150, 0.9200, 0.9300 and 0.9370. This means that in case one of these levels is breached, it is likely to reach towards the next level.
• The 2 levels that delimit the range are 0.9460 and 0.9035. Should the pair breach through one of these level – it will be a strong indication for the beginning of a long-lasting trend.
