AUD/CHF recently busted through the ceiling around the .5300 major psychological mark but seems to be stalling on its climb.
Can it find support at the former resistance?
Check out these inflection points on the 4-hour time frame!
AUD/CHF 4-hour Forex Chart by TradingView
Hawkish expectations for the Reserve Bank of Australia (RBA), supported by upbeat jobs and inflation figures, allowed the Aussie to gain traction on its uptrend since mid-November.
At the same time, improving overall market sentiment on the U.S. government shutdown finally ending and global trade tensions easing also contributed to AUD strength while putting the safe-haven CHF on the back foot.
Can AUD/CHF sustain its climb from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Price is stalling around the .5350 minor psychological mark close to R1 (.5380) and could be due for a pullback to nearby support levels.
The pivot point (.5310) is close by and could attract more buyers on a shallow correction while S1 (.5280) lines up with the 38.2% Fibonacci retracement level and former resistance.
A much larger retracement could find support at the 50% Fib that coincides with the dynamic inflection points at the moving averages or the 61.8% level lining up with the trend line and S2 (.5220).
Keep an eye out for reversal candlesticks suggesting a bounce at these levels or for long red candles closing below key support zones that could point to AUD bears gaining the upper hand.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
