Forex Market: AUD/CHF daily trading outlook

Friday’s trade saw AUD/CHF within the range of 0.7130-0.7221. The pair closed at 0.7154, falling 0.36% on a daily basis. It has been the first drop in the past six trading days. The daily high has been the highest level since December 10th, when a high of 0.7232 was registered. In weekly terms, AUD/CHF added 0.46% during the past week, while extending the gain from the week ended on December 20th. AUD/CHF has depreciated 3.45% so far during the current month, following two consecutive months of gains.

At 15:18 GMT on Monday AUD/CHF was gaining 0.17% for the day to trade at 0.7183. The pair touched a daily high at 0.7190 at 15:25 GMT, after testing that same level during the early hours of the Asian session. Resistance may be encountered at the psychological 0.7200 level and after that – at the high from December 25th (0.7221). Support, on the other hand, may be received at the hourly 55-period EMA (0.7165) and after that – at the low from December 25th (0.7130).

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

Correlation with Major Currency Pairs

Taking into account the week ended on December 27th 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 AUD/USD (0.8455, or very strong)
AUD/CHF to NZD/USD (0.6903, or strong)
AUD/CHF to GBP/USD (0.4577, or moderate)
AUD/CHF to EUR/USD (0.3436, or moderate)
AUD/CHF to USD/CHF (-0.4132, or moderate)
AUD/CHF to USD/CAD (-0.4608, or moderate)
AUD/CHF to USD/JPY (-0.7299, or strong)

1. During the examined period AUD/CHF moved strongly in one and the same direction with NZD/USD, while moving strongly in the opposite direction compared to USD/JPY.

2. AUD/CHF moved almost equally in one and the same direction with AUD/USD during the past week.

3. AUD/CHF moved to a moderate extent in one and the same direction with GBP/USD and EUR/USD during the period in question, while moving to a moderate extent in the opposite direction compared to USD/CHF and USD/CAD.

Daily and Weekly Pivot Levels

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

R1 – 0.7162
R2 – 0.7171
R3 (range resistance) – 0.7180
R4 (range breakout) – 0.7204

S1 – 0.7146
S2 – 0.7137
S3 (range support) – 0.7128
S4 (range breakout) – 0.7104

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

Central Pivot Point – 0.7155
R1 – 0.7220
R2 – 0.7287
R3 – 0.7352

S1 – 0.7088
S2 – 0.7023
S3 – 0.6956