AUD/CHF Eyes Bullish Reversal Amid Improving Risk Sentiment
Market Overview
On Tuesday, the Australian Dollar gained fresh momentum across the board, supported by a rebound in risk sentiment. Investors welcomed signs of easing trade tensions, particularly after reports emerged suggesting a temporary halt in tariff escalations. This shift in sentiment has reduced demand for safe-haven currencies such as the Swiss Franc and Japanese Yen. Consequently, AUD/CHF has found support and begun to strengthen over the short term, reversing earlier downside pressures.
Technical Analysis
The AUD/CHF pair is attempting to establish a new bullish trend on the 2-hour chart. Price action has broken above its descending trendline and now holds above the 100-period moving average, indicating a structural shift in market control. Buyers are currently challenging resistance at 0.51999, a level that, if breached, could confirm the onset of a bullish reversal.
Should the pair sustain a breakout, upside targets will come into focus at 0.52201 and 0.52458, aligning with previous price pivots. Further strength could carry the pair towards the next major resistance at 0.52741. Momentum indicators support the bullish outlook, with RSI holding firmly in buying territory and the MACD histogram rising above zero, confirming growing upside momentum.
However, if the pair fails to clear 0.51999 and reverses, sellers would need to drive the price below 0.51257 to invalidate the bullish structure. A break of this key support would return the pair to its previous downward path.
Key Technical Levels
Resistances: 0.52201, 0.52458, 0.52741
Supports: 0.51716, 0.51257
Fundamental Drivers
Traders now turn their attention to Wednesday’s releases, including Australia’s Leading Index and China’s Q1 GDP data. The Chinese economy, Australia’s largest trading partner, is projected to grow 5.2% year-on-year—slightly below the previous 5.4%. Any surprise deviation from this figure could significantly impact sentiment around commodity currencies, particularly the AUD. Meanwhile, the outcome of Australia’s forward-looking indicators may also influence expectations for domestic economic resilience.
Conclusion
AUD/CHF has broken above its trendline, with buyers targeting 0.52201 and higher. Failure to hold momentum could expose 0.51257 support to renewed downside pressure.
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