The quotations of the Australian dollar to the Swiss franc move in a long-term downward trend. As part of this trend, the AUD/CHF overcame the round support of 0.7000, which was then tested as a resistance.
The positive test brought the price to new levels, but the downward momentum weakened slightly. In addition, the price is slightly above the 2018 low at 0.6870, which now sets the support for price.
If the defensive zone test is positive and the price action pattern appears in the chart, the AUDCHF quotes can rebound back to the area between 0.7000 and 0.7025.
However, due to the downward trend, a more sensible speculative scenario could ensure that the 0.6870 support is broken. Traders could then look for sell opportunities after the reversals, targeting around 0.6750, where there is a support that worked well in 2015.
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