With trade tensions still brewing and risk appetite fading, I’m thinking of hopping in this AUD/CHF triangle breakdown. Or do you think I should wait for a pullback?
Short AUD/CHF Idea
This pair has formed lower highs and higher lows on its daily time frame to create a long-term symmetrical triangle consolidation pattern. Price is now starting to creep below support to signal that Aussie bears have won the match and that further losses are underway.
This chart pattern spans .7100 to around .7800, so the resulting downtrend could be of the same height. However, I’m hesitating to jump in since stochastic is already indicating oversold conditions on this time frame.
Besides, the RBA decision is still coming up and the central bank previously shifted to a less downbeat stance. Although they did highlight uncertainties related to trade spats, policymakers seemed slightly more optimistic about the Land Down Under’s economic prospects.
As for the Swiss franc, the lower-yielding currency continues to rake in risk-off flows, especially since the U.S. dollar could be vulnerable to the trade troubles its government is creating.
I’m inclined to wait for a bit of a bounce instead of jumping in a short position at market as price might even test the top of the triangle again before dropping back down. I’ll keep y’all posted!
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