AUD/newly CHF's developed double bottom pattern comes first!
Is a breakthrough and reversal imminent?
We can witness a rally that goes as high as the chart formation if the pair is able to break past the neckline at the 0.6400 big psychological barrier.
That would be around 200 pips!
Technical indicators, however, are less certain of a bullish run.
The fact that the 100 SMA is still below the 200 SMA suggests that the fall is the direction of least resistance. In other words, there's still a decent possibility that the selloff may pick up again.
Additionally, it looks that the 100 SMA is acting as dynamic resistance close to the double bottom neckline.
Remember that Stochastic is also approaching the overbought area, indicating that buyers may want to proceed cautiously. In such situation, AUD/CHF may once more drop to its lows at 0.6200.
