AUD/CHF has been guided by a descending channel since early September. This pattern has had several confirmations on the southern side, while the second upper confirmation was provided last week when the Aussie reversed from the 0.76 mark. The rate, however, did not go far, as it continued to trade along the upper boundary of this long-term pattern. It is unlikely that its southern boundary is tested one more time due to the significant steepness downwards. Technical indicators suggest that the rate could enter a period of consolidation during the following week, supported by the monthly PP and the 200-hour SMA. It is likely that this movement results in an upside breakout and a subsequent surge. On the other hand, the pair might also edge lower in line with two prevailing junior channels. In this case, the downside target is the 0.7520/30 area.
