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AUDCHF: Approaching 0.7807 (2017 high)

Since the beginning of the year the currency pair gained more than 5.0% plus last week rallied almost 3.5% and is in an accumulation phase since mid-July.

Last week the AUDCHF rallied with a wide range and wide-spread, closing near the high of the week and also managed to close above the previous week high, which suggests a strong bullish momentum.

The currency pair is entering a weekly resistance area and approaching the 2017 high registered in February at 0.7807 the confluence of these two key areas may offer a good resistance.

The stochastic is showing an overbought market although is still displaying a strong bullish momentum.

Expecting an upward move to 2014 low at 0.7990 on a break above 2017 high at 0.7807 (scenario 1) however a bounce from 2017 high at 0.7807 may drag down the currency pair to a Fibonacci retracement at 0.7616 (scenario 2).