Monday – not a hard day. Short look at AUD/CHF
Today is holiday in the US (Memorial Day) and in the UK (Spring Bank Holiday). This means that volatility on the FOREX market should be extremely low. As a result, it is better to be careful and maybe refrain from active trading operations. This is good in a way because it gives us an opportunity to analyze the current situation better.
Fundamental Analysis:
The previous week was difficult for Australian currency against the Swiss franc. It was weakening and on Friday it reached the support level. This week the most interesting statistics is published on Tuesday – Swiss national GDP is published at 5-45 a.m. GMT. The previous fact was +0,2%. Taking into consideration the situation with retail sales (Swiss retail sales went down in the 1-st quarter) consumption is decreasing – this is a negative factor for GDP.
Despite the rising of Swiss trade balance, we can anticipate that GDP could be worse than expected.
Also, we recommend to pay attention to building approvals in Australia for April. The news is published on Wednesday.
Technical Analysis:
On the daily time frame Parabolic SAR reversed and started rising. The trend line is still moving down and it is better to wait at least one more day before taking a decision to open longs. There is a divergence between Williams %R and the price. Williams %R intersected its lower line.
OBV – the indicator which is reflecting the volume – is reversing too – this is a bullish signal.
If the pair breaks the short 9-EMA – it will be possible to open longs with the following targets: 0,70437 (38,2% Fibo correction level) and 0,70876 (50% correction). Otherwise – wait till the pair retests the support level 0,69000.
Fundamental Analysis:
The previous week was difficult for Australian currency against the Swiss franc. It was weakening and on Friday it reached the support level. This week the most interesting statistics is published on Tuesday – Swiss national GDP is published at 5-45 a.m. GMT. The previous fact was +0,2%. Taking into consideration the situation with retail sales (Swiss retail sales went down in the 1-st quarter) consumption is decreasing – this is a negative factor for GDP.
Despite the rising of Swiss trade balance, we can anticipate that GDP could be worse than expected.
Also, we recommend to pay attention to building approvals in Australia for April. The news is published on Wednesday.
Technical Analysis:
On the daily time frame Parabolic SAR reversed and started rising. The trend line is still moving down and it is better to wait at least one more day before taking a decision to open longs. There is a divergence between Williams %R and the price. Williams %R intersected its lower line.
OBV – the indicator which is reflecting the volume – is reversing too – this is a bullish signal.
If the pair breaks the short 9-EMA – it will be possible to open longs with the following targets: 0,70437 (38,2% Fibo correction level) and 0,70876 (50% correction). Otherwise – wait till the pair retests the support level 0,69000.