Missed the neckline breakout on AUD/CHF?
If you’re still bullish on this one, make sure you check out this ongoing retest!
As you can see from the 4-hour chart below, the pair is back down to the former neckline of its double bottom reversal pattern.
AUD/CHF: 4-hour
AUD/CHF 4-hour Forex Chart by TV
AUD/CHF is closing in on the area of interest spanned by the 50% to 61.8% Fibonacci retracement levels, right above the .6000 major psychological mark.
But what are technical indicators saying?
Moving averages are looking in favor of a continuation of the rally, as the 100 SMA is above the 200 SMA. The faster-moving SMA is even increasing its lead, which suggests that bullish pressure is getting stronger.Stochastic has also been indicating oversold conditions or exhaustion among sellers for quite some time, so buyers could take advantage of this and hop back in soon.
In that case, AUD/CHF could find its way up to the swing high at the .6170 area and beyond!
Just don’t forget that the SNB recently announced another interest rate hike this week, so there might still be some room for the franc to rally.
Then again, a pickup in risk-taking could strongly benefit AUD, especially if RBA tightening expectations start coming in play again.
Btw, check out our brand new Risk-On / Risk-Off Meter!