AUD/CHF has been forming higher lows and higher highs connected by an uptrend channel on its 4-hour chart.
Is another bounce off support in the works?
Check out these nearby inflection points!
AUD/CHF 4-hour Forex Chart by TradingView
The market mood saw a huge improvement last week after Trump backpedaled on military action in Greenland and higher tariffs on European nations, prompting a de-escalation relief rally that lifted the Aussie while weighing on the safe-haven franc.
AUD/CHF carried on with its climb to test the top of its ascending channel, retreating early this week on a bit of profit-taking.
Can it find support at these Fib levels?
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AUD/CHF is already pulling back to the 50% retracement level that lines up with the pivot point (.5370) and could be enough to attract more buyers to sustain the uptrend. A larger correction could still reach the 61.8% Fib closer to the .5350 minor psychological mark before Aussie bulls step in.
Keep your eyes peeled for reversal candlesticks suggesting a bounce at any of these support levels, as a continuation of the climb could take the pair back up to the swing high at R1 (.5440) or for a break above the channel top onto a rally to R2 (.5490).
On the other hand, long red candles closing below the channel bottom could be indicative of a reversal, potentially dragging AUD/CHF to the next downside targets at S1 (.5320) then S2 (.5250).
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.
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