Weekly Forex Signals
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Expecting the AUD/CHF to go bearish
Wed, Aug 27 2008, 07:46 GMT
by Benny Menashe
AUD: The Australian dollar is a favorite target of carry trades, in which investors get funds in a country with low borrowing costs and invest in one with higher rates, earning the spread between the two. The risk is that currency market moves erase those profits. Traders are certain Reserve Bank of Australia policy makers will lower their interest rate by a quarter-percentage point when they meet in September the 2nd, according to interest-rate futures trading on the Sydney Futures Exchange. When the dollar is going up and commodities are coming off, that's a problem for the Australian dollar as it depends on the price of gold due to the fact that it is one of its major exports.
CHF: The Swiss franc is commonly used for carry trades as the base interest rate stands at 2.25%. Today the Swiss consumption Indicator came out for July which was worse than last month. Many economists have been expecting a slowdown in exports and the financial sector
Technical
The momentum and the RSI are in a major bearish trend but we see some divergence in the minor trend as the momentum broke the zero line and pointing upward. The MACD is after a bearish cross when the fast line has broken the zero line. The break of the zero line proves a strong signal for a further downward trend. The prices are trading above the parabolic SAR and broke the 20 and 50 MA lines but the 50 days MA is still pointing down. The Bollinger bands are close indicating a possible expanded move of the prices after drifting a bit sideways in the last few months.
AUD/CHF the overall trend is in a bearish direction
AUD/CHF is trading in a range over the past couple of months
AUD/CHF over the past few days the pair has been trading sideways
Published on Wed, Aug 27 2008, 08:27 GMT
Archive
- Momentum holds U.S. dollar while sterling looks to recover
Published On Mon, Jun 29 2009, 10:46 GMT - USD takes full advantage of worn-out Euro
Published On Mon, Jun 22 2009, 10:46 GMT - U.S. dollar takes full advantage of worn-out Euro
Published On Mon, Jun 15 2009, 08:00 GMT - U.S. dollar takes full advantage of worn-out Yen
Published On Tue, Jun 9 2009, 10:32 GMT - GBP takes full advantage of worn-out U.S. dollar
Published On Mon, Jun 1 2009, 09:35 GMT
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