Has the Bearish Trend of the AUD/CHF Finished?
Arslan Butt • 1 min read
What’s up, fellas.
The Australian Dollar collapsed the other day against its peer currencies after a surprise and steep fall in the value of Chinese goods imports, which ultimately stoked concerns for the health of the world’s second-largest economy and putting the Aussie under pressure again.
China is the biggest trading partner of Australia, which is why any uncertainty related to China also impacts the Aussie.
On the flip side, the haven appeal increases demand for the Swiss currency as its economy is considered to have significant gold reserves. Anyhow, on the technical side, AUD/CHF reached the first significant support at 0.6870.
The leading indicators are suggesting that sellers are exhausted, such as RSI and Stochastic Oscillator are in the oversold area. Awesome Oscillator formed a bullish divergence with the chart. Consequently, we can expect a soon recovery of the pair.
The odds of the rebound from 0.6870 are high. In the middle term, the main target for the pair is located at 0.7018. Nonetheless, before the pair reaches that level, we may see a correction of around 0.6870 with a possible retest of 0.6870. To confirm a trend reversal, it’s worth waiting until the pair breaks above the trendline near 0.6917.