AUD/CHF 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Although for some time the 200-period SMA was able to keep the exchange rate afloat, eventually the bears pushed through the support and started a sell-off that later on turned into a downward-sloping channel. This implies that AUD/CHF is highly unlikely to rise above the falling resistance line at 0.7865 in the nearest future. Instead, the Australian Dollar is expected to confirm this level as an intermediate ceiling and start moving towards the lower edge of the pattern at 0.7492, where it merges with the weekly S2. Moreover, most of the weekly and monthly technical indicators support this idea. However, the sentiment is strongly bullish—at the moment 74% of open positions are long.

© Dukascopy Bank SA
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