The AUD/CHF pair fell hard during the course of the session on Wednesday, heading down to the 0.82 level. That area has been supportive in the past, but I am also looking at the stochastic oscillator, as it shows that there could be a potential crossover somewhere in this general vicinity. While this may not be a buying opportunity right away, it is certainly something worth watching. After all, although the Australian dollar isn’t one of my favorite currencies right now, the truth is that the Euro and the Franc continue to suffer at the hands of other currencies around the world as the European economy is so soft.
Also, remember that the pair should go higher based upon the risk appetite around the world. Stock markets in doing fairly well, so it makes sense that perhaps we could get an opportunity to go higher. I’m watching the daily candle for the session to make sure I have an opportunity go long, so I will probably wait till the close. However, looking at this market, I see that we could go as high as the 0.8450 level and stay within the previous consolidation area.
Alternative situation
The alternate situation we find yourselves and would be a break down below the 0.82 level, which could send this market much lower. The 0.80 level would be targeted first, and then perhaps as low as the 0.78 level. With that, selling would be the only thing we could do.
Ultimately, I am more susceptible to start buying. That being the case, I think it’s only a matter of time before we see buyers step in and push this market higher. What would be even better in my opinion is to see this market go above the 0.85 level, which would be very strong. That would probably send the market to the 0.87 level, which was the most recent high. All things being equal, I believe that the next 24 hours or perhaps the next 48 hours should be very influential as to where this market goes next.
