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Hugo in HTO Trading,

AUDCHF: Testing a key resistance

The currency since the beginning of the year gained more than 2.0% and last week rallied more than 3.0%. This past week AUDCHF made a phase change, going from a warning to a bullish phase.

Last week the AUDCHF rallied with a wide range and closed near the high of the week, also managed to close above previous week high, suggesting a strong bullish momentum.

The Stochastic is showing a weak bullish momentum and is above the 50 mid line.

Expecting an upward move to a weekly resistance at 0.7721 on a break above the key resistance at 0.7554 (scenario 1) and a bounce off the key resistance at 0.7554 may push the pair further up to a weekly resistance at 0.7990 (scenario 2). But a break below the key resistance may trigger staying aside bears to short, taking the pair down to a weekly support at 0.6919 (scenario 3).