AUDCHF Bear Trend
The sell off in AUDCHF has seen the pair moving lower within a bearish channel, with price breaking down through several key levels recently. Currently, price is stalled at a test of the channel low and the .6717 level. However, while price remains below the .7800 level the focus is on further downside and a continuation of the bear trend. With MACD and RSI still bearish, a break below current lows will open the way for a move down towards the .6578 level next.
The current risk-off dynamic lends itself to lower prices in the pair given the safe haven demand for CHF and the strong, positive correlation between AUD and risk assets. With this in mind, there is scope for a continuation lower if the current risk off move develops further this week.
Key Data to Watch
With little in the way of key data for either currency this week, the main focus will be on risk flows. Aside from the general COVID backdrop, the main event to focus on this week is the FOMC tomorrow. If there is any hawkish shift from the Fed (such as any further discussions around tapering) this will hit risk assets hard, sending AUDCHF lower in the near term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.