The AUD/CHF 4-hour chart is presenting a classic Head & Shoulders pattern within a well-defined bearish descending channel, signaling a likely continuation to the downside if neckline support fails.
Key Observations:
Bearish Channel in Play: The broader trend remains bearish, with price action respecting both channel boundaries.
Head & Shoulders Formation: A visible Head & Shoulders pattern has formed near the top of the channel, with the neckline around 0.5275.
Neckline Break Risk: Price is currently testing the neckline area (highlighted in red). A confirmed break below would likely trigger bearish momentum.
Downside Target: A break below the neckline could push AUD/CHF toward the support zone near 0.5220, in line with the lower boundary of the channel.
Trend Structure: Lower highs and lower lows continue to dominate, reinforcing the bearish bias.
Conclusion:
AUD/CHF remains technically weak, and the emerging Head & Shoulders breakdown may act as a strong continuation signal within the existing downtrend channel. A clear close below 0.5270 could open the door for a further drop toward 0.5220. Caution is warranted for bulls unless a significant reversal signal emerges.
Key Observations:
Bearish Channel in Play: The broader trend remains bearish, with price action respecting both channel boundaries.
Head & Shoulders Formation: A visible Head & Shoulders pattern has formed near the top of the channel, with the neckline around 0.5275.
Neckline Break Risk: Price is currently testing the neckline area (highlighted in red). A confirmed break below would likely trigger bearish momentum.
Downside Target: A break below the neckline could push AUD/CHF toward the support zone near 0.5220, in line with the lower boundary of the channel.
Trend Structure: Lower highs and lower lows continue to dominate, reinforcing the bearish bias.
Conclusion:
AUD/CHF remains technically weak, and the emerging Head & Shoulders breakdown may act as a strong continuation signal within the existing downtrend channel. A clear close below 0.5270 could open the door for a further drop toward 0.5220. Caution is warranted for bulls unless a significant reversal signal emerges.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.