The Australian dollar recently traded lower against the Swiss franc, but it has managed to gain buyers around the 0.8370-80 levels. The AUDCHF pair is currently trading higher, and most technical indicators suggest more upside likely in the short term.
The Australia’s House Price Index (HPI) data was released by the Australian Bureau of Statistics earlier during the Asian session, which came on the higher side. The Forex market was expecting a reading of 1.1%, and the report mentioned that there was an increase of 1.8%. The Aussie dollar was seen gaining bids after the release.
There is an important contracting triangle forming on the hourly chart for the AUDCHF pair. The pair recently tested the triangle resistance trend line, but failed to break it. It is now heading back towards the triangle support trend line, which might complete the 5 wave sequence in the pair. If the pair manages to hold the support area and bounces, then a break above the triangle resistance is possible in the short term.
If the pair manages to break the triangle, then initial resistance can be seen around the 100 hourly moving average, which also coincides with the 38.2% fib level of the last drop from the 0.8509 high to 0.8377 low. However, the most important hurdle could be around the 200 moving average, which is just below the 50% fib level.
Alternatively, if the pair breaks the triangle support area, then a move towards the last low would be on the cards. A break below the 0.8370 support level might take the pair towards the 0.8340 level.
Overall, buying dips might be a good idea if the pair continues to trade above the 1.4380 level.
Posted By Simon Ji of IKOFX
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