The AUD/CHF pair is probably one that you don’t pay very close attention to, but it is at your own risk. After all, the market looks at this as a proxy for risk. The Australian dollar is without a doubt a relatively “risky asset”, while the Swiss franc is certainly a safety currency. Money tends to flow into Switzerland when times are a bit scary, while money flows into gold and Australia when traders feel comfortable. With that, the market looks as if we have been doing fairly well over the course of several months, and as a result the pair continued to climb.
The channel drawn on the chart is still holding true, and as a result we should continue to see upward pressure. This is especially true after seeing the Wednesday candle break above the top of the shooting star for Tuesday. That of course is very bullish, and as a result the market should continue to head towards the 0.85 handle. It is there where we see significant selling pressure, and I think that a move above there should send this market to eventually head to the 0.90 level.
Excellent trend, and as a result I like this trade a lot.
I like this trend a lot, as it has been very steady. With that being the case, I feel that it is correct to continue buying the pair. On top of that, the Australian dollar has shown significant strength against the US dollar over the last couple of days. We are at a massive support level in a pair, and any time you talk about the Aussie dollar, you have to look at the AUD/USD pair as well. Since the Australian dollar does look like it’s due for a bounce, this should only add fuel to the fire when it comes to this pair. I think that the 0.85 level will be targeted first, but ultimately I believe that pair gives way and then we head all the way up to the 0.90 level, probably continuing to form the channel that we are in.