This is a phenomenon that happens ever so often. Trends in forex are pretty much there and can be charted best with channels. The main thick channel marks the uptrend in AUDCHF and the minor channel plots the minor moves within this larger trend.
The bigger channel's objective is towards 0.85471. However, price failed to break the upper channel line which is resistance. Also it broker the lower channel line of the minor channel. So the current rally is mostly a retracement to test the lower minor channel line.
Real support is at 83263. It must be tested and it should hold. Also the downward move will give some upside room so price can move away from the main upper channel line in order reach the intended price target of 85471.
We'll see how price will unfold in the coming weeks.
Of course, the entire study could be invalidated if some undiscounted factors help break the upper channel line. That's a risk of trading :)
And here are just some of the documented examples of this measured move with channels method:
channeltrader.wordpr...tons-law-of-inertia/
The bigger channel's objective is towards 0.85471. However, price failed to break the upper channel line which is resistance. Also it broker the lower channel line of the minor channel. So the current rally is mostly a retracement to test the lower minor channel line.
Real support is at 83263. It must be tested and it should hold. Also the downward move will give some upside room so price can move away from the main upper channel line in order reach the intended price target of 85471.
We'll see how price will unfold in the coming weeks.
Of course, the entire study could be invalidated if some undiscounted factors help break the upper channel line. That's a risk of trading :)
And here are just some of the documented examples of this measured move with channels method:
channeltrader.wordpr...tons-law-of-inertia/