AUDCHF could be in for a long-term climb as it broke past the neckline of its double bottom on the 4-hour time frame. Price could pull back to the broken resistance before heading any further north.

If support around the broken neckline holds, price could resume a climb that’s at least the same height as the chart formation. However, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse.

Also, the gap between the moving averages is widening to reflect stronger selling pressure. Then again, price has busted through the 100 SMA dynamic inflection point, so it might hold as support from here and a test of the 200 SMA might be in order.

RSI is already turning lower from the overbought zone to signal a return in selling pressure. Similarly stochastic is moving south so AUDCHF could follow suit as sellers take over while buyers take a break.

The Aussie drew support from improved risk sentiment even though the US and China resumed their tit-for-tat tariffs. The measures were seen to be softer-than-expected, signaling that both sides are giving more leeway for talks. This could also ease uncertainty for businesses and support demand for commodities, something that would be positive for the export-dependent Australian economy.

Meanwhile, the franc sold off after the SNB decision as the central bank reiterated that the currency is overvalued. Traders remain on edge for potential central bank intervention, something that the Swiss central bank is known for. After all, they’re keen on keeping their local currency weak in order to preserve an advantage in trade and keep domestic inflation supported.