Take profit: 0.7200
Protective stop: 0.6800
Risk Ratio (RR): 1: 2.1 (approx.)
Estimated duration: 21 days
Relevant as long as AUDCHF is below 0.6965
Note: We had to choose between AUDCHF and EURCHF , we did not wish to opt for EURCHF . To recap, this is an early entry as the price did not reach the support at the time of this writing as discussed in the weekly update.
We are aware that tension between the US and China may drive safe haven flows into CHF. We are attempting to capitalize over a potentially minor intervention by the SNB as was seen last week.
There are risks associated with this entry, corrective gains must materialize this week if we were to consider remaining in the trade. The potential drawdown is a re-test of 0.6825.
We are aware the spread has yet to fully stabilize.
We saw some GBP strength in today's session on expectations for a brexit deal. To recap, it has been suggested an emergency meeting will be held in November but a deal is expected to be agreed upon.
Both USDCAD and AUDCHF made no significant progress in today's session. There has been some AUDCHF weakness but it is minor at the time of this writing bearing in mind it is a weekly entry.
The monetary policy minutes (RBA) is the key release for AUDCHF during the Asian session.
AUDCHF is trading at 0.7027 at the time of this writing, we are closing the long trade at market price.