The Birth of a New Safe Haven Currency - Trade Idea AUD/CHF
The ongoing Russian invasion and the risk off mode associated with it, have given birth to a new safe haven currency – the Australian Dolla (and the New Zealand Dollar as well).
One thing is that the Australian Dollar is a commodity currency and we all know that commodities are currently flying through the roof. Another thing is that Australia is very far from any potential conflict. And in this case, we can see a real pattern. The Euro is much weaker than the GBP, the German stock exchange is weaker than the American one and well, the Polish currency and stock exchange are pretty much being wrecked.
Quite surprisingly, AUD is even stronger than CHF – the real benchmark for safe havens! So, in today’s analysis we’re taking a look at AUDCHF.
Last week, the pair managed to create a major, long-term buy signal. The buy signal, comes from the fact that the price broke the Year Long Resistance line and secured a close above. The correction was a big bearish correction of a post-covid recovery.
Now AUDCHF technically and fundamentally is ready to grow to main Upside Target of 0.7228 as Swing trade, with secondary target are being markered as TP1 and TP2 (take profit). Trade should be aborted if price fails to hold 0.675 with a daily close below this level.
Trade Example:
Buy Position of 10 units of AUDCHFpro with Take profit at 0.7228 will result in up to €38,900
