A Break Above Trendline Resistance Could Open the Way for Further Gains

Economic

Forex

Summary:

The pair has already closed decisively above both the 100-period and 200-period moving averages, currently positioned at 0.5826 and 0.5777, respectively.

BUY AUDCHF

EXP

TRADING

0.58300

Entry Price

0.58810

0.57700

0.58364 +0.00146 +0.25%

0.0

Pips

Flat

0.57700

Exit Price

0.58300

Entry Price

0.58810

The Australian Bureau of Statistics (ABS) will release September's Consumer Price Index (CPI) on Wednesday at 00:30 GMT. The report is expected to show that inflation increased by 4.2% year over year, above the 4.0% recorded in August. Meanwhile, monthly CPI is forecast to rise by 0.7%, following the previous month's increase of 0.4%.

The ABS will also publish the trimmed mean CPI, the inflation measure most closely monitored by the Reserve Bank of Australia (RBA). The annual reading stood at 3.6% in August, while the monthly trimmed mean CPI is expected to increase by 0.3% in September, up from 0.2% previously. These figures will be important in assessing whether underlying inflationary pressures are continuing to build and whether further monetary tightening could be necessary.

Australia's seasonally adjusted unemployment rate reached 4.7% in September, its highest level in five years. However, policymakers appear to be more concerned about persistent inflation than the deterioration in labor market conditions, which could influence the RBA's approach to future interest rate decisions.

Meanwhile, the Swiss National Bank (SNB) continues to maintain its policy rate at 0%. The threshold for an interest rate hike appears relatively high, as inflation remains within the central bank's price stability range of 0% to 2%. Nevertheless, safe-haven demand linked to geopolitical tensions and political instability in France could provide support for the Swiss franc against other major currencies.

SNB Vice Chairman Antoine Martin recently stated that the economic outlook remains subject to considerable uncertainty. However, Martin ruled out interest rate increases in the near term, noting that inflation remains comfortably within the central bank's 0%–2% price stability range. His comments suggest that the current inflation environment does not justify an immediate adjustment to monetary policy, even as uncertainty surrounding global economic conditions and energy prices continues to affect the outlook. This position indicates that the SNB remains focused on its domestic inflation objectives rather than reacting immediately to external risks. A Break Above Trendline Resistance Could Open the Way for Further Gains_1

A Break Above Trendline Resistance Could Open the Way for Further Gains_1

Technical Analysis

AUDCHF has maintained a bullish momentum and is now testing a descending trendline that could determine the next directional move. If the pair manages to break decisively above this resistance, the upward movement could extend toward the local resistance level at 0.5881, which was reached on September 18. The pair has already closed decisively above both the 100-period and 200-period moving averages, currently positioned at 0.5826 and 0.5777, respectively. This development supports the current bullish structure and suggests that the upward movement could continue if buyers maintain control.

Regarding the oscillators, the Relative Strength Index (RSI) is currently at 62, leaving room for further gains before entering overbought territory. The indicator also has space to advance without immediately developing bearish divergence, suggesting that bullish momentum could remain intact. Meanwhile, the MACD displays a bullish histogram that has alternated between gaining and losing depth, indicating some fluctuations in upward momentum. However, the signal lines remain firmly in bullish territory, supporting the possibility of further gains. If AUDCHF breaks above the descending trendline, the oscillator signals and the broader price structure could align in favor of an extension of the current bullish movement.

Trading Recommendations

Trading direction: Buy

Entry price: 0.5828

Target price: 0.5881

Stop loss: 0.5770

Validity: Nov 06, 2026 15:00:00

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data

A Break Above Trendline Resistance Could Open the Way for Further Gains

Technical Analysis

Risk Disclosure