This week is off to a slow start, so I’m looking at this simple range play before any top-tier events come up.

Will AUD/CHF keep moving sideways?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Canadian headline retail sales up 1.1% vs. 0.4% forecast

PBoC cuts interest rates again to boost economic activity

China announced larger cut to long-term rate to shore up property market

RBNZ official Hawkesby: Cash rate can reach 4.25% before RBNZ has more balanced view

Russia to shut down Nord Stream pipeline for three days

U.S.-Iran nuclear deal not yet imminent

Iran: Nothing is agreed until everything is agreed

Upcoming Potential Catalysts on the Forex Economic Calendar:

Australian flash manufacturing and services PMI at 11:00 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: AUD/CHF

AUD/CHF 1-hour Forex Chart

AUD/CHF 1-hour Forex Chart

This pair has been pacing back and forth inside its range on the short-term time frame, finding support at the .6600 mark and resistance at .6700.

Price is currently testing support and forming a double bottom to boot. But will the floor still hold?

If buyers continue to defend the range support, AUD/CHF could bounce right back up to the resistance or at least until the area of interest around the .6650 minor psychological mark.

A break lower, on the other hand, could set off a drop that’s the same height as the pattern or at least a hundred pips.

Technical indicators are hinting at a likely breakdown since the 100 SMA is below the 200 SMA while Stochastic looks ready to move south.

Fundamentals are also pointing to more losses for the Aussie, especially since the PBoC just announced another rate cut. This basically suggests that Chinese policymakers are in panic mode and are scrambling to keep the economy on its feet.

Now that can’t be good for the Australian economy, which is China‘s number one trading buddy. More signs of trouble in China’s property market could dampen Australia’s iron ore and raw material exports while also weighing on overall risk appetite.

If you’re trading this one, don’t forget to look out for the Land Down Under’s flash manufacturing and services PMIs due in the next Asian session!