AUDCHF: Ascending Triangle Pattern Breakout Imminent ?

AUD/CHF – Charts & Analysis

As of writing: Strength Vs Weakness Tables Standings

• AUD is showing S3 (strong) and S1 on the Trend and Day trading tables respectively
• CHF is showing W2 and W1 (weak) on the Trend and Day trading tables respectively

Primary Observations:

• The daily chart above shows CADCHF forming an ascending Triangle pattern
• This pattern is formed from a bull trend line, anchored 31st Jan 2022, formed 22nd Feb 2022
• This pattern is completed by the 0.7050 / 0.7075 resistance zones
• Resistance has held on 3 prior occasions and is currently being tested again
• This pattern is widely seen as a continuation pattern

As always, this chart would be hard to find without my FX Strong Vs Weak Trading Tables (Link to Strong/Weak Tables HERE).

Primary Observations:

• The weekly chart above shows us the bigger picture
• The above mentioned ascending triangle pattern  is forming within an existing range pattern
• 0.6400 is Oct 2020 / Dec 2021 range support
• 0.7250 is April 2019 / Feb 2021 range resistance
• This week’s bar is (to-date) some 220 points to the upside

Current Narrative:

• The above mentioned +220p upside move is from trendline support to 0.7075 resistance
• A daily close above 0.7050 would potentially expose 0.7250 range resistance
• Should 0.7075 again hold then a retest of rising (bull) trendline support is possible.
• Either way, something has to give.

My Call:

• I am not currently trading this pair.
• I would be prepared to long this pair on a confirmed daily close above 0.7050
• Alternatively a close circa 0.6950 / 0.7000 on contact with trendline support would provide a safer long entry
• A removal of either CAD or CHF from my S/W Trading Tables (HERE) would of course negate this entire trade plan.

S/W Caveat:

• A removal of either of these currencies from my S/W Trading Tables (HERE) would of course negate this entire trade plan