AUD/CHF Forecast Today 31/01: Bounces From Support (Chart)

(MENAFN- Daily Forex)

• During the trading session on Thursday, the AUD/CHF pair has turned around quite nicely, bouncing from a major support level in the form of the 0.565 level.
• This isn't to say that we are suddenly going to take off to the upside and bus through the ceiling, but it does suggest that perhaps we are going to continue to see people out there willing to put money to work.
• After all, this is a pair that is highly sensitive to risk appetite, with the Swiss franc being a safety currency, and of course the Australian dollar being a“risk on currency.”

While I'm not necessarily excited about owning the Australian dollar, I definitely do not want to own the Swiss franc, and that's what this is about, it's about relative strength. That's the essence of all Forex trading, so I think you need to keep that in mind. All things being equal, this is a market that faces quite a few technical indicators and barriers, but it also has a lot of support underneath it.

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The technical analysis for this AUD/CHF pair is setting up a nice range bound trade, and I do think that we get a little bit of a shot higher. This higher shot should open up the possibility of the market going toward the 0.5750 level, perhaps even the 0.58 region. Keep in mind that the 200 Day EMA sits between these 2 levels, so that could also cause a bit of a hassle. All things being equal, when you look at the charts from a longer-term perspective, we are essentially going sideways from that perspective. This isn't to say that I think this is the trade of the century, I just think that a little bit of follow through to the upside makes a certain amount of sense at this point in time.

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