AUD/CHF 4H Chart: Descending Triangle

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The risks for AUD/CHF are heavily skewed to the downside at the moment. For one, the currency pair has recently formed a descending triangle, a pattern that indicates growing supply. In addition, the exchange rate is fluctuating right at the intersection of two major trend-lines: one joins the peaks of the last 13 months and the other is more than three and a half years old. Accordingly, we would expect the Aussie to decline. The immediate support is at 0.7350, represented by the monthly R1, followed by the lower bound of the pattern circa 0.73 francs. At the same time, the Australian Dollar is moderately overbought in the SWFX market—56% of open positions are long, which only adds to the bearish bias towards the pair.
© Dukascopy Bank SA
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