Missed the trend line breakout on AUD/CHF?
The pair could still be gearing up for a pullback to the former resistance area that could now hold as support.
Take a look at these potential correction levels on the hourly chart:
AUD/CHF 1-hour Forex Chart by TradingView
Strong risk-on flows appear to be kicking in, lifting the higher-yielding Australian dollar while simultaneously dragging the franc lower, even with a fresh batch of U.S. tariffs and countermeasures.
New policy measures from China aimed at boosting employment and the Fed’s inclination for policy easing soon appear to have improved the market mood lately. Apart from that, the RBA’s surprise decision to keep rates on hold also propped AUD higher.
Can AUD/CHF sustain its breakout rally past current levels?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Australian dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
In case you missed our AUD/CHF bounce watchlist setup and the pair’s surge past the descending trend line resistance, there could still be an opportunity to catch the reversal if the pair pulls back to nearby Fibonacci retracement levels.
The 38.2% level coincides with R1 (0.5230) while the 50% Fib lines up neatly with a former resistance zone around .5220 that could now hold as a floor. A larger correction could reach the 61.8% retracement closer to the broken trend line and the pivot point level (.5210), but a break below this area could set off a drop to the next support at S1 (.5180).
The 100 SMA is below the 200 SMA for now, but the moving averages are turning higher and could be prepping for a bullish crossover. Keep your eyes peeled for reversal candlesticks at any of the Fibs, as a bounce could take AUD/CHF past the swing high at R2 (.5250) and onto the next ceiling at R3 (.5270).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
