Yesterday the AUD/CHF climbed to a 7 month high, peaking at 0.9970 before falling to close at 0.9936, 14 pips under the monthly resistance level that restricted a further rise. As a results we had another Daily Pin Bar form, showing a rejection of higher prices, combined with a third level trend completion which could suggest a possible reversal, or at least a pullback / price correction before heading higher. Last week's highs are now support at 0.9896 but we could see prices fall back to the December highs at 0.9832. a 38.2 Fibo retracement for the up trend sits at 0.9750 and would be a likely candidate below 0.9830. The the upside we have further resistance at 1.0150 from the 2010 high before the July 2012 highs of 1.0348 come into play. There certainly is a strong case here for the bears to take some control, but there is also a well established up-trend that has lasted 2 months in place. Be cautious if you are shorting this pair.
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