Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward.
The closest is the 200 day average, which is 67.6 pips away.
As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern.
For additional context, note that price has gone up 8 out of the past 10 days.
It should be noted, though, the 20 day simple moving average turned upwards, which may be a bullish sign.
The clearest trend exists on the 30 day timeframe, which shows price moving up over that time.
The volume at each period of the pennant is also important….
Or to simplify this another way, note that out of the past 30 days aud/chf’s price has gone up 20 them.
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
Relative to other instruments in the forex asset class, aud/chf ranked 22nd the day prior in terms of percentage price change.