© Dukascopy Bank SA
At the end of the last year AUD/CHF refused to follow the bearish tendency, which originated back in the spring of 2013. A month later the currency pair tried to recover, but eventually the bullish momentum subsided, leaving us with a symmetrical triangle.
A similar formation was developing between last year's August and November and in the end it did not manage to change the trend—the market stayed bearish. Accordingly, the current pattern is also likely to entail a sell-off once the support at 0.7831 is breached. This course of events is also implied by the technical indicators—most of them are giving ‘sell' signals at the moment.
© Dukascopy Bank SA