Dear all,

Since I have been explaining inflation on my last posts I chose this audchf daily chart.

You may see yesterdays bearish candle showing bearishness due to a low CPI number.

The number come out lower then expected and the market sold off.

The pair is currently retracing but tecnically it is still in an up trend

If number 5 does not hold price and if number 3 is taken out then a change of trend is taking place.

At this moment the 50 day moving average is holding price but the stochastic indicator has still some room to come down.

If you want to be a bull you may try to buy at support 0.72500 to 0.73200 or if you prefer to be a bear then you may wait for the zone to be taken out and sell an overbought stochs back down.

Another nice clue would be if the price can stay over the moving average and continue its way up raiding the bullish stochs cycle up.

Best of Pips


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