Franc bears, unite! If you’re looking for a chance to short the Swiss currency, you might wanna look at these longer-term chart setups on AUD/CHF and GBP/CHF.
Bounce or break? AUD/CHF is hovering right at the very bottom of its long-term ascending channel visible on the daily time frame, still deciding whether to resume its climb or push for a breakdown.
The 100 SMA is above the longer-term 200 SMA, which suggests that Aussie bulls could stay on top of their game for now. At the same time, stochastic is already dipping into oversold territory to signal that sellers are feeling exhausted and might let buyers take over from here.
If so, a bounce back to the channel resistance near the .8000 major psychological resistance or at least until the mid-channel area of interest at .7700 could take place. On the other hand, a rise in bearish pressure could lead to a move below the channel support at the .7450 area and spur further losses for the pair.
Pound bulls seem unstoppable these days as the British currency made an upside breakout from its long-term consolidation patterns against its rivals.
In particular, GBP/CHF recently broke out of its symmetrical triangle formation, indicating that buyers are ready to go for more gains. This daily chart pattern is approximately 1,500 pips tall so the resulting uptrend could last by that much.
Technical indicators are giving mixed signals, though, as the moving averages appear to be bracing for an upward crossover to draw more buyers in while stochastic has been cruising at the overbought region for quite some time to indicate buyer exhaustion.
If bulls need to take a quick break, a pullback to the broken triangle resistance around the 1.2550-1.2600 levels and moving averages could be seen before the uptrend gains traction.