The AUD/CHF has broken a key support level at 0.9950 and entered a Technical Vacuum, well below the 62 Day Moving Average at 1.0003 . The pair has been trending lower since making a new four and a half year high on August 02 of 1.0348. The previous high up until August second was set in November 2007 at 1.0823 before it fell over 3800 pips in 11 months to an all time low of 0.6929 in October 2008. The pair appears to have formed an inverted head and shoulders pattern on the weekly chart and is currently heading for another key support level at 0.9810 which is a series of closes on the weekly chart going back several years. There are some hurdles in the way in the form of the Weekly S1 at 0.9892 and Monthly S1 at 0.9867, but it is quite possible that we will see this pair trade at least as low as the weekly S2 of 0.9795 which lines up almost perfectly with the 50% Fibo for the last 120 days of price action. If prices turn bullish look for intraday resistance at 0.9917, 0.9938 & 0.9967. Intraday support can be seen at 0.9888, 0.9868 + 0.9838. This bear is highly bearish at the moment and appears to be just getting started with the potential to reach as low as 0.9575 in the next 30 days.
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