The AUD/CHF currency pair has recently displayed compelling bearish characteristics across both the daily and weekly timeframes, reinforcing the current downtrend and presenting a potential continuation opportunity for trend-following traders.
Technical Breakdown:
1. Daily Chart – Bearish "Falling Three Soldiers"
On the daily chart, AUD/CHF has formed a textbook "falling three soldiers" candlestick pattern. This formation consists of three consecutive bearish candles following a temporary bullish retracement, signaling strong selling pressure and a likely continuation of the prior downtrend. This pattern typically reflects increasing control by sellers and a lack of significant bullish response.
2. Weekly Chart – Bearish Engulfing Pattern
Zooming out to the weekly timeframe, the pair recently printed a bearish engulfing candle, a classic reversal signal. The bearish engulfing fully overshadows the prior bullish candle, signaling a strong shift in momentum in favor of the bears. When found at a swing high or resistance area, this pattern adds significant weight to a bearish bias.
3. Price Below 50 EMA and 200 EMA
Further confirmation comes from the moving average setup. AUD/CHF is currently trading below both the 50-day and 200-day exponential moving averages (EMAs). This alignment reinforces the downtrend, with the 50 EMA acting as a dynamic resistance level. The gap between price and the EMAs suggests sustained bearish pressure and little sign of bullish recovery in the near term.
---
Market Sentiment and Outlook:
From a broader perspective, the Swiss Franc (CHF) often benefits from risk-off sentiment due to its status as a safe haven, while the Australian Dollar (AUD) is considered more risk-sensitive. With global risk sentiment facing headwinds from inflationary pressures, central bank uncertainty, and geopolitical tensions, AUD may remain under pressure against CHF.
Traders could look for pullbacks into resistance — such as the 50 EMA or previous support-turned-resistance levels — to consider short entries with confirmation, ideally supported by bearish candlestick patterns or momentum indicators.
---
Conclusion:
With multiple layers of bearish confluence — the falling three soldiers on the daily chart, the bearish engulfing pattern on the weekly, and price action firmly below the 50 and 200 EMAs — the technical bias for AUD/CHF remains strongly bearish. Until the pair reclaims key moving averages or prints a reversal structure, the path of least resistance continues to point downward.
---
Rocket boost this content to learn more.
Disclaimer:Trading is risky please use a simulation
trading account before you trade with real money.
Do not use margin.
Learn risk management and profit taking strategies.
Technical Breakdown:
1. Daily Chart – Bearish "Falling Three Soldiers"
On the daily chart, AUD/CHF has formed a textbook "falling three soldiers" candlestick pattern. This formation consists of three consecutive bearish candles following a temporary bullish retracement, signaling strong selling pressure and a likely continuation of the prior downtrend. This pattern typically reflects increasing control by sellers and a lack of significant bullish response.
2. Weekly Chart – Bearish Engulfing Pattern
Zooming out to the weekly timeframe, the pair recently printed a bearish engulfing candle, a classic reversal signal. The bearish engulfing fully overshadows the prior bullish candle, signaling a strong shift in momentum in favor of the bears. When found at a swing high or resistance area, this pattern adds significant weight to a bearish bias.
3. Price Below 50 EMA and 200 EMA
Further confirmation comes from the moving average setup. AUD/CHF is currently trading below both the 50-day and 200-day exponential moving averages (EMAs). This alignment reinforces the downtrend, with the 50 EMA acting as a dynamic resistance level. The gap between price and the EMAs suggests sustained bearish pressure and little sign of bullish recovery in the near term.
---
Market Sentiment and Outlook:
From a broader perspective, the Swiss Franc (CHF) often benefits from risk-off sentiment due to its status as a safe haven, while the Australian Dollar (AUD) is considered more risk-sensitive. With global risk sentiment facing headwinds from inflationary pressures, central bank uncertainty, and geopolitical tensions, AUD may remain under pressure against CHF.
Traders could look for pullbacks into resistance — such as the 50 EMA or previous support-turned-resistance levels — to consider short entries with confirmation, ideally supported by bearish candlestick patterns or momentum indicators.
---
Conclusion:
With multiple layers of bearish confluence — the falling three soldiers on the daily chart, the bearish engulfing pattern on the weekly, and price action firmly below the 50 and 200 EMAs — the technical bias for AUD/CHF remains strongly bearish. Until the pair reclaims key moving averages or prints a reversal structure, the path of least resistance continues to point downward.
---
Rocket boost this content to learn more.
Disclaimer:Trading is risky please use a simulation
trading account before you trade with real money.
Do not use margin.
Learn risk management and profit taking strategies.
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。