The change in the momentum for the AUD/CHF pair has been detected; it should result in a corrective wave up. After the pair bounced from the downtrend trendline, the price broke above the key resistance R1 (0.7092).
While the bullish divergence has been formed on longer- and short-term scales, it indicates that sentiment is changing in bulls favor. At the same time, the price rejected the uptrend trendline that could be a signal that AUD/CHF is ready to move higher today or this week.
Consider buying AUD/CHF near R1 targeting either R2 (0.7209) or R3 (0.7272) resistance levels taken from the Fibonacci applied to the 07.05 low and 14.05 high. One move lower than S1 (0.7042) could either result in the consolidation or continuation of the downtrend.
Support: 0.7042
Resistance: 0.7272, 0.7209, 0.7272
