The Australian Dollar continues to weaken against the Swiss Franc and has now formed a bearish flag formation on the 4 hour chart.
The AUD managed to close above the resistance level at 0.8590 early in September, but was unable to hold above the zone and fell back below 0.8600 again last week. After testing 0.8500 2 days ago the pair returned to 0.8600 where it once again found resistance and is now trading at 0.8523.
The bearish flag formation certainly suggests a further fall is in order, but with Gold appearing bullish, will it lend some strength to the AUD which exports Gold in a big way? The bear flag will no longer be valid if we trade back above 0.8550, but a fall below 0.8508 will put this pair in a technical vacuum and 0.8350 could become the next target rather quickly.
