AUDCHF | LONG | INTRADAYThe Story
I arrived at my desk at about 8:15 AM, ready to tackle the trading day. The only pair catching my attention in the Asian session was AUDCHF. Typically, I’m not a huge fan of the Swiss franc due to its tight trading range, but today was different. I decided to engage in the business that needed doing. Normally, I use the Swiss franc as a safe haven indicator, but today, I chose to buy the Australian dollar against it.
ECO SNAP
My economic calculator, which aggregates various economic aspects of countries, rates them to provide a comprehensive outlook.
Comparison
Australia:
Economic Outlook Score: +1.33
Highlights: The Australian economy benefits from low unemployment, a strong trade balance, and positive consumer confidence. However, there are some concerns regarding inflation, which is slightly above the target.
Switzerland:
Economic Outlook Score: +1.44
Highlights: Switzerland's economy boasts very low unemployment, controlled inflation, a strong trade balance, and positive consumer confidence. These factors contribute to a marginally stronger economic outlook compared to Australia.
Combined Analysis:
The Swiss franc (CHF) has a slightly higher overall score (+1.44) compared to the Australian dollar (AUD) (+1.33), indicating a marginally stronger economic outlook for Switzerland. Both economies show low unemployment and stable economic indicators, but Switzerland benefits from better inflation control and a lower interest rate environment, which supports economic stability.
Strategy
Today's strategy is straightforward: get in and get out quickly.
Interest Rate Differentials: We have interest rate differentials working in our favor, which typically benefits such trades.
Timing: Since it's Monday, and swaps are charged on Wednesdays and Fridays, there is likely no support for us between now and then.
Given these considerations, I will capitalize on the favorable conditions and execute my trades efficiently to maximize potential returns while minimizing risks.
Trade closed: target reached
Note
This played out well, and now we have completed a follow up from CADCHF. I did not trade it but lined it up, and needed to step away to tend to other business but check out the EUR/GBP/CAD against the CHF. All long, and for what?
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.