AUD/CHF:Bearish Momentum Strengthens with 3 Key Technical Signal
The AUD/CHF currency pair has recently displayed compelling bearish characteristics across both the daily and weekly timeframes, reinforcing the current downtrend and presenting a potential continuation opportunity for trend-following traders.
Technical Breakdown:
1. Daily Chart – Bearish "Falling Three Soldiers"
On the daily chart, AUD/CHF has formed a textbook "falling three soldiers" candlestick pattern. This formation consists of three consecutive bearish candles following a temporary bullish retracement, signaling strong selling pressure and a likely continuation of the prior downtrend. This pattern typically reflects increasing control by sellers and a lack of significant bullish response.
2. Weekly Chart – Bearish Engulfing Pattern
Zooming out to the weekly timeframe, the pair recently printed a bearish engulfing candle, a classic reversal signal. The bearish engulfing fully overshadows the prior bullish candle, signaling a strong shift in momentum in favor of the bears. When found at a swing high or resistance area, this pattern adds significant weight to a bearish bias.
3. Price Below 50 EMA and 200 EMA
Further confirmation comes from the moving average setup. AUD/CHF is currently trading below both the 50-day and 200-day exponential moving averages (EMAs). This alignment reinforces the downtrend, with the 50 EMA acting as a dynamic resistance level. The gap between price and the EMAs suggests sustained bearish pressure and little sign of bullish recovery in the near term.
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Market Sentiment and Outlook:
From a broader perspective, the Swiss Franc (CHF) often benefits from risk-off sentiment due to its status as a safe haven, while the Australian Dollar (AUD) is considered more risk-sensitive. With global risk sentiment facing headwinds from inflationary pressures, central bank uncertainty, and geopolitical tensions, AUD may remain under pressure against CHF.
Traders could look for pullbacks into resistance — such as the 50 EMA or previous support-turned-resistance levels — to consider short entries with confirmation, ideally supported by bearish candlestick patterns or momentum indicators.
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Conclusion:
With multiple layers of bearish confluence — the falling three soldiers on the daily chart, the bearish engulfing pattern on the weekly, and price action firmly below the 50 and 200 EMAs — the technical bias for AUD/CHF remains strongly bearish. Until the pair reclaims key moving averages or prints a reversal structure, the path of least resistance continues to point downward.
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Technical Breakdown:
1. Daily Chart – Bearish "Falling Three Soldiers"
On the daily chart, AUD/CHF has formed a textbook "falling three soldiers" candlestick pattern. This formation consists of three consecutive bearish candles following a temporary bullish retracement, signaling strong selling pressure and a likely continuation of the prior downtrend. This pattern typically reflects increasing control by sellers and a lack of significant bullish response.
2. Weekly Chart – Bearish Engulfing Pattern
Zooming out to the weekly timeframe, the pair recently printed a bearish engulfing candle, a classic reversal signal. The bearish engulfing fully overshadows the prior bullish candle, signaling a strong shift in momentum in favor of the bears. When found at a swing high or resistance area, this pattern adds significant weight to a bearish bias.
3. Price Below 50 EMA and 200 EMA
Further confirmation comes from the moving average setup. AUD/CHF is currently trading below both the 50-day and 200-day exponential moving averages (EMAs). This alignment reinforces the downtrend, with the 50 EMA acting as a dynamic resistance level. The gap between price and the EMAs suggests sustained bearish pressure and little sign of bullish recovery in the near term.
---
Market Sentiment and Outlook:
From a broader perspective, the Swiss Franc (CHF) often benefits from risk-off sentiment due to its status as a safe haven, while the Australian Dollar (AUD) is considered more risk-sensitive. With global risk sentiment facing headwinds from inflationary pressures, central bank uncertainty, and geopolitical tensions, AUD may remain under pressure against CHF.
Traders could look for pullbacks into resistance — such as the 50 EMA or previous support-turned-resistance levels — to consider short entries with confirmation, ideally supported by bearish candlestick patterns or momentum indicators.
---
Conclusion:
With multiple layers of bearish confluence — the falling three soldiers on the daily chart, the bearish engulfing pattern on the weekly, and price action firmly below the 50 and 200 EMAs — the technical bias for AUD/CHF remains strongly bearish. Until the pair reclaims key moving averages or prints a reversal structure, the path of least resistance continues to point downward.
---
Rocket boost this content to learn more.
Disclaimer:Trading is risky please use a simulation
trading account before you trade with real money.
Do not use margin.
Learn risk management and profit taking strategies.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.