AUD/CHF Targets Key Resistance Amid Range-Bound Trading

Market Overview

Market sentiment remains mixed, with traders weighing Australia’s economic outlook against global risk conditions. Given the recent consolidation phase, traders are closely watching key technical levels for a potential breakout or rejection.

Technical Analysis

On the four-hour chart, AUD/CHF is trading within a neutral range between support at 0.56305 and resistance at 0.56729. Buyers are actively challenging the upper boundary, attempting to establish a sustained breakout.

If bullish momentum strengthens and price action closes above 0.56729, the next upside targets would be 0.56844, 0.56991, and 0.57153. A sustained break above these levels would indicate a short-term bullish reversal, allowing further gains.

Momentum indicators confirm increasing bullish pressure. RSI has moved above 50, signaling a potential shift in momentum towards buyers. MACD bars are rising in the positive zone, suggesting an increase in buying pressure.

However, failure to break resistance could lead to renewed selling pressure, with sellers eyeing a move towards 0.56305. A break below this support would invalidate the bullish scenario, exposing lower targets and reinforcing a downward trend continuation.

Key Technical Levels

• Resistance Levels: 0.56844, 0.56991, 0.57153
• Support Levels: 0.56567, 0.56305

Fundamental Factors Driving AUD/CHF

The upcoming Australian trade balance report, set for release on Thursday, remains the primary event for AUD traders. A better-than-expected trade surplus could strengthen the Australian dollar, reinforcing the bullish breakout attempt against the Swiss franc. Conversely, weaker trade data could stall AUD’s momentum, keeping the currency under pressure.

The Swiss franc’s safe-haven status continues to provide underlying support, especially amid ongoing global uncertainties. Risk-off sentiment in broader markets may limit AUD gains, particularly if investors shift towards safe assets.

Conclusion

AUD/CHF remains range-bound, with buyers testing resistance at 0.56729. A breakout could fuel further upside, while a rejection could push prices back toward support at 0.56305.

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