One of my favorite barometers for risk is the Australian dollar versus Swiss franc pair. After all, the Aussie dollar is a “risk on” currency, while the Swiss franc of course is considered to be a safety currency. Because of this, it does make a lot of sense to pay attention to this pair.
Looking at current trading, you can see that we are at the very bottom of the overall range, which extends from 0.69 on the bottom and 0.7350 on the top, with large ranges of support and resistance at the outer edges. The fact that we turned right back around at the 0.69 level is a good sign, because it at least shows that we may possibly try to save the overall risk sentiment. However, a lot of structural damage has been done.
The market looks as if a break below the 0.69 level would be very negative and could unwind this pair several handles to the downside. In the meantime, it looks like we are trying to reach the top of this overall range, which extends to the 0.70 level. It would not surprise me at all to see the market turned right back around at that area and start falling. However, if we do break above that level on a daily close, then the risk appetite of overall market should continue to be decent, and this pair will more than likely go looking towards the 0.7250 level after that.
Regardless, this is an area on this chart you should watch. Not only to trade this currency pair, but the pay attention to what the overall attitude of the market in general. If this pair rallies, then you can assume that stock markets are probably going to do well. If it breaks down, they will probably fall. This is a simple barometer of how traders feel.
Looking at current trading, you can see that we are at the very bottom of the overall range, which extends from 0.69 on the bottom and 0.7350 on the top, with large ranges of support and resistance at the outer edges. The fact that we turned right back around at the 0.69 level is a good sign, because it at least shows that we may possibly try to save the overall risk sentiment. However, a lot of structural damage has been done.
The market looks as if a break below the 0.69 level would be very negative and could unwind this pair several handles to the downside. In the meantime, it looks like we are trying to reach the top of this overall range, which extends to the 0.70 level. It would not surprise me at all to see the market turned right back around at that area and start falling. However, if we do break above that level on a daily close, then the risk appetite of overall market should continue to be decent, and this pair will more than likely go looking towards the 0.7250 level after that.
Regardless, this is an area on this chart you should watch. Not only to trade this currency pair, but the pay attention to what the overall attitude of the market in general. If this pair rallies, then you can assume that stock markets are probably going to do well. If it breaks down, they will probably fall. This is a simple barometer of how traders feel.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.