AUD/CHF technical analysis: Will the AUD/CHF quotes continue to grow?

Dmitry Lukashov IFC Markets

AUD/CHF technical analysis summary

Buy Stop: Above 0.668

Stop Loss: Below 0.64

Indicator	Signal
RSI	Neutral
MACD	Buy
MA(200)	Neutral
Fractals	Neutral
Parabolic SAR	Buy
Bollinger Bands	Neutral

AUD/CHF chart analysis

On the daily timeframe, AUDCHF: D1 approached the downtrend resistance line. It must be broken upward before opening a position. A number of technical analysis indicators have formed signals for further growth. We do not exclude a bullish movement if AUDCHF rises above the last upper fractal: 0.668. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal, the low since October 2020 and the last down fractal: 0.64. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (0.64) without activating the order (0.668), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental analysis of forex – AUD/CHF

Investors welcomed the Reserve Bank of Australia (RBA) Meeting Minutes. Will the AUDCHF quotes continue to grow?

The RBA Minutes noted the possibility of a rate hike when the actual inflation rate is stable in the range of 2% to 3%. In the 3rd quarter of 2021, the Australia Consumer Price Index rose 3% year over year. The Reserve Bank of Australia (RBA) Weighted Median Consumer Price Index climbed 2.1%. Investors are counting on an early rate hike. An additional positive was the RBA's plans to complete its asset repurchase (QE) program in February 2022, in case of good economic performance. He had previously planned to do so in May. An additional positive for the AUDCHF currency pair may be the announcement of the pharmaceutical company Moderna about the creation of a vaccine against the Omicron coronavirus. This could reduce investor interest in the Swiss franc as a defensive asset. The RBA rate is + 0.1%. Swiss National Bank (SNB) rate is negative -0.75%.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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