Forex Market: AUD/CHF trading outlook for December 14th

Friday’s trade saw AUD/CHF within the range of 0.7042-0.7200. The pair closed at 0.7069, falling 1.68% on a daily basis, or the most since December 3rd, when it depreciated 2.03%. The daily low has been the lowest level since November 9th, when a low of 0.7039 was registered. In weekly terms, AUD/CHF lost 3.42% during the current week, or the most since the week ended on August 23rd, when it slumped 3.66%. It has been a second straight week of losses. AUD/CHF has gone down 5.04% so far during the current month.

No relevant macroeconomic reports and other events, which may have an impact on AUD/CHF trading, are scheduled for release on Monday (December 14th).

Correlation with Major Currency Pairs

Taking into account the week ended on December 13th and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

AUD/CHF to USD/CHF (0.9128, or very strong)
AUD/CHF to AUD/USD (0.8251, or very strong)
AUD/CHF to USD/JPY (0.8165, or very strong)
AUD/CHF to NZD/USD (-0.4492, or moderate)
AUD/CHF to GBP/USD (-0.6595, or strong)
AUD/CHF to USD/CAD (-0.8186, or very strong)
AUD/CHF to EUR/USD (-0.8703, or very strong)

1. During the examined period AUD/CHF moved strongly in the opposite direction compared to GBP/USD.

2. AUD/CHF moved almost equally in the opposite direction compared to USD/CAD and EUR/USD during the week.

3. AUD/CHF moved almost equally in one and the same direction with USD/JPY, AUD/USD and USD/CHF during the period in question. This relationship has been the most pronounced between AUD/CHF and USD/CHF.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the Monday pivot levels for AUD/CHF are presented as follows:

Central Pivot Point – 0.7098
R1 – 0.7148
R2 – 0.7235
R3 – 0.7285

S1 – 0.7011
S2 – 0.6961
S3 – 0.6874

By using the traditional method of calculation again, the weekly pivot levels for AUD/CHF are presented as follows:

Central Pivot Point – 0.7147
R1 – 0.7246
R2 – 0.7431
R3 – 0.7530

S1 – 0.6962
S2 – 0.6863
S3 – 0.6678