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I’m still on the lookout for potential opportunities to short the Aussie while coronavirus fears are in play, and the RBA statement just spurred a nice bounce.

Currency Snapshot:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Spanish unemployment change at 8:00 am GMT
  • U.K. construction PMI at 9:30 am GMT
  • Euro zone PPI at 10:00 am GMT

What to Watch: AUD/CHF

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

Aussie pairs got a good boost from the RBA decision in the Asian session as the central bank sounded optimistic about global and domestic growth prospects. However, this bullish reaction might be short-lived as market players remain mostly risk-averse while coronavirus contagion fears are present.

AUD/CHF is trading below a descending trend line visible on its 1-hour time frame and might be due to test this resistance area soon. This happens to line up with a support-turned-resistance level around .6525 and the 100 SMA dynamic inflection point.

There are no major reports up for release from the Swiss economy in the London session, so the lower-yielding franc might keep taking advantage of risk-off flows. If resistance at .6525 holds, the pair could resume its slide to the swing low of .6440 or lower.

Here’s MarketMilk’s volatility guide for  AUD/CHF to guide you in setting exit levels:

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