The long term price charts are pointing out an extreme bearishness on the AUD/CHF currency pair. Now the shorter term charts confirm that an impeding downside move is highly probable.
Yesterday we posted a long term view on AUDCHF highlighting the bearish orientation of the pair. From a shorter term perspective signals now appearing on lower time scales, in particular the daily and the weekly, are exposing the rate to an impeding powerful decline.
In the following price charts we are using a combination of 7-period and 20-period moving averages to identify price signals.
Daily AUD/CHF Price Chart
On the daily chart a non-crossover has formed by the close of yesterday’s – June 6th – session. As long as the rate does not recapture 0.695 on a close basis this is extremely bearish.
AUDCHF Daily Price Chart – Bearish Non-Crossover Signal
Weekly AUD/CHF Price Chart
On the weekly price chart a non-crossover signal has formed by the close of last week on May 31st that is equivalently bearish although there is theoretically some room until 0.702 for the rate to move up.
AUDCHF Weekly Price Chart – Bearish Non-Crossover Signal
Monthly AUD/CHF Price Chart
On the monthly price chart a more distant non-crossover has also formed. This is practically less bearish than when the averages are brushing each other but still quite negative with room for the rate to move up to 0.705
AUDCHF Monthly Price Chart – Remote Bearish Non-Crossover Signal
AUDCHF SELL SIGNAL
We take the daily bearish signal that is systematically related to higher time scales bearish indications as a short selling opportunity:
- We are selling AUDCHF at the present rate (0.6915 at the time of posting).
- Position to be closed in case the rate closes above the daily 20-period average by the close of the day (presently sitting at 0.695).
- Initial rate target is 0.68.
- Long term we expect a powerful decline below 0.6.