- The Aussie dollar has fallen pretty significantly during the trading session against the Swiss franc, but we are seeing a certain amount of support here at the 0.53 level that suggests that maybe we don’t have to worry so much about selling off.
- This isn’t that it can’t happen, but it is likely to continue to hold.
- I think this area is going to continue to be a bit of a floor in the market.
With that being the case, you also have to keep in mind that market participants continue to look at this through the prism of a risk on or risk off perspective. After all, the Australian dollar is considered to be a risk on type of currency. And of course, the Swiss franc is considered to be one of the premier safety currencies. This will continue to be a major factor in this pair overall.
Back and Forth?
So, with that being said, I believe that we have a situation where traders will continue to go back and forth based on the vibe of the day, if you will. If we were to break down below the 0.53 level, then we have to look at the 0.52 level as a potential target. If we break above the swing high at 0.5370, then I think we have a shot higher and therefore could open up a move to the 0.55 level.
This will go solely with any risk appetite from what I can see. And with the volatility, I think this is a situation where you have to be short term, kind of back and forth. But I, at least at this point in time, are much more likely to take longs than I am short, as the area seems to be so important.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
