AUD/CHF has formed higher lows and higher highs on its 4-hour time frame, moving inside an ascending channel and closing back in on support.
Will buyers hop in soon?
Keep your eyes on these inflection points!
AUD/CHF 4-hour Forex Chart Faster with TradingView
The Australian dollar has been enjoying steady upside momentum recently, thanks to the start of the RBA’s tightening era. Not only did the central bank hike interest rates earlier this month, but they also signaled scope for more increases while upgrading inflation forecasts.
Meanwhile, the Swiss franc has been on the back foot, despite some gold-related safe-haven inflows here and there. After all, the SNB has maintained a dovish outlook while still stubbornly refusing to venture into negative rate territory.
Is there more room for AUD/CHF gains?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your 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!
AUD/CHF has been inside its ascending trend channel since the beginning of the year and looks prime for another bounce off support, which is right around the Fib retracement levels.
The pair is already testing the 38.2% level at the mid-channel area of interest but could still go for a larger correction to the 61.8% Fib closer to the channel bottom and pivot point (.5420).
Keep your eyes peeled for reversal candlesticks at any of these regions, as a bounce could lift AUD/CHF back up to the swing high and channel top around R1 (.5500). Stronger bullish pressure could even spark a break higher and sharper rally to R2 (.5560) and beyond.
On the other hand, long red candles falling through the support zones could suggest that a reversal is brewing, potentially dragging the pair down to S1 (.5360) then S2 (.5280) next.
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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