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AUD/CHF - Diamond Pattern, Rounded Bottom

The AUD/CHF has been consolidating since December 2013. The daily chart shows a bearish market that looks to be shifting as traders put in a "diamond pattern". This reflects expansion (higher highs and lower) on the left, and contraction (lower highs and higher lows) on the right. 


(AUD/CHF 4H Chart)

The bottom of this "diamond" pattern is basically a rounded bottom. The break above the pattern could be a sign of reversal. At the moment, we see a breakout attempt.

However price action is not that convincing, and the prevailing bearish momentum is still intact. In fact, if the Stochastic is above 80 and RSI at 60, anticipate some bearish attempt. 

I almost never trade a breakout against the trend, and this is the case with AUD/CHF. Instead, I will wait for a pullback to buy near the bottom of the current consolidation, as well as better stoch-RSI levels.

Also, a break above 0.8205 will be needed to put in a bottom. In that scenario, I think we can become slightly more aggressive with the bullish outlook.