AUD/CHF had been moving within the ascending channel until on 5th of February the channel was broken with the daily close below the lower trendline. Channel breakout suggests that the trend is about to change and the price can continue moving lower.
Fibonacci applied to the channel breakout point shows three potential downside targets and two resistance levels. There is clearly strong resistance near 0.7100 where the price bounced several times and it is also confirmed by 61.8% Fibs resistance (R1).
Consider selling AUD/CHF on correction up near R1 (0.7075), targeting one of the support levels, with the final and main target at S4 (0.6745). A stop loss can be placed just above R2 (0.7154).
Support: 0.7010, 0.6950, 0.6870, 0.6745
Resistance: 0.7075, 0.7150
