In today’s technical piece, we’re turning to a less frequently traded but currently interesting pair: Australian dollar to Swiss franc (AUD/CHF). While it might not be on every trader’s watchlist, the chart is shaping up for a potential breakout.
Since mid-May, AUD/CHF has been moving within a well-defined channel down formation, marked with red trendlines. The structure has been steady, with consistent lower highs and lower lows — until now.
The momentum appears to be shifting. Recently, the lows have flattened, and the pair has established a green horizontal support level. This is often the first stage of a bullish reversal, as it signals sellers are losing control and buyers are beginning to step in at a consistent price floor.
For a buy signal to activate, we need to see a daily close above the upper red line of the channel. That would confirm a breakout from the corrective pattern and open the door to a strong upside move.
Conversely, if the price closes a day below the green support, that would invalidate the bullish scenario and trigger a sell signal, suggesting a return of downward momentum.
The setup is clean, the levels are clear, and the breakout — whichever way it goes — could offer a high-conviction trade.