AUD/CHF 1H Chart: Channel Up
Updated
The Australian Dollar has shown some strength against the Swiss Franc for the last three weeks, thus resulting in the formation of a channel up. The starting period of this pattern was rather chaotic; however, it managed to form two distinctive peaks within the last five trading days. The direction of the last wave down is to the side, resembling a minor falling wedge. Technical signals of both patterns therefore indicate that the rate should bounce off the 0.7545 area and breach the wedge to the upside. This level is likewise reinforced by the 55-hour SMA located at 0.7551. Immediate resistance, however, is provided by the monthly R2 at 0.7602. Meanwhile, trend indicators have substantially decreased in strength, suggesting that in case the surge upwards is to continue, it may no longer be sustainable for more than a few trading days.
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Due to recent developments and requests the Dukascopy Research Team has decided upon updating the outlook for the AUD/CHF currency pair. First of all it has to be noted that on Thursday a break out from the ascending channel pattern occurred, which caused the curiosity in the pair. It can be observed that the pair encountered a strong resistance level above the 0.7620 mark. That resistance forced the formation of a new descending channel pattern, which is headed at the moment to the support of the first monthly resistance level at the 0.7479 level. However, the currency pair has already begun a short term surge, as it has rebounded against the channel's lower trend line.
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