Silver continues to trade in rangeJuly 15, 2019
Analyzing the New Zealand dollar and its next moveJuly 20, 2019
Australian dollar forms shooting star against Swiss franc again
The Australian dollar initially tried to rally during the trading session on Wednesday but continues to find quite a bit of resistance near the 0.6950 level against the Swiss franc. At this point, the 0.6950 CHF level has offered a lot of trouble as we simply cannot break above there. The fact that we are forming a shooting star for the second day in a row of course is something that we should be paying attention to, and the fact that the 50 day EMA is sitting right there as well doesn’t exactly suggest strength either.
At this point, we will probably roll over and go looking towards the 0.6870 CHF level, which has offered support. There is a gap just underneath there that could offer a little bit of support, but if we break through that gap then we could really start going to the downside, and perhaps reaching towards my target of 0.6750 CHF below. Rallies at this point looks very unlikely to be successful, and quite frankly I don’t read this as a potential uptrend until we break above the 0.70 CHF handle. If we did, then I could be convinced to buy this market.
What I find interesting is that the Australian dollar falling against the Swiss franc suggests that the risk appetite around the world is starting to falter a bit, and quite frankly that’s not much of surprise. The S&P 500 has formed a very ugly candle stick for the trading session on Wednesday, and that could be a sign that we are becoming rather concerned. I don’t know that this is a longer-term issue, but clearly it looks as if the buyers of risk appetite out there are getting a bit exhausted. This currency pair is one of the most you are playing as I can think of when it comes to trade that thesis, as the Australian dollar is highly levered to Chinese growth, exports, and of course commodities. The Swiss franc of course is known for its stability and safety.