Partner Center Find a Broker

Markets seem to be in a much better mood lately, so I’m looking at a potential risk-on play with this short-term uptrend on AUD/CHF.

Currency Snapshot:

Forex Majors Price Performance from MarketMilk
Forex Majors Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • German GfK consumer climate index due 7:00 am GMT
  • RBA Governor Lowe’s testimony at 9:00 am GMT
  • U.K. High Street lending data due 9:30 am GMT

What to Watch: AUD/CHF

With the market mood picking up quite a bit in the past few hours, thanks to developments in trade talks and positive data, I’m looking at this risk-on play with AUD/CHF.

AUD/CHF 1-hour Forex Chart
AUD/CHF 1-hour Forex Chart

The pair has just bounced off the bottom of the channel on its 1-hour time frame but has plenty of room to climb before hitting the resistance at .6800. A bullish divergence can also be seen as price made higher lows while stochastic drew lower lows.

AUD/CHF Volatility from MarketMilk
AUD/CHF Volatility from MarketMilk

Looking at the pair’s average pip movement per day suggests that it could have room to hit the target at the top of the channel, and a stop of the same size should be good enough for an intraday trade.

RBA Governor Lowe still has a speech coming up, though, and any dovish hints could spur a break below the channel bottom. On the other hand, words of reassurance and optimism regarding the trade deal could keep AUD/CHF in its uptrend.