A focus on Swiss Franc Crosses (CADCHF and AUDCHF)

Intermediate
  • In this article we are going to take a look at the intermediate-term outlooks for two “risk” currencies, the Australian and Canadian Dollars versus the safe haven currency, the Swiss Franc.
  • Bear trends in CADCHF and AUDCHF are a result of the current, broad “risk off” environment across global financial markets, in the wake of developing trade wars.
  • The threats for both CADCHF and AUDCHF into June are for further losses.

CADCHF

A plunge lower at the end of May last week has reinforced short-term bearish pressures and also pushed below a key swing low from March at .7384, to produce an intermediate-term Double Top pattern.

This reinforces both the intermediate-term bear trend and also leaves immediate risks lower for early June

Intermediate-term Outlook – Downside Risks: We see a downside risk for .7347.

  • Lower targets would be .7224, .7177 and .7000
  • What Changes This? Above .7493 shifts the outlook back to neutral; above .7550 is needed for a bull theme.

Daily CADCHF Chart

cadchf

AUDCHF

A plunge lower throughout May through a key swing low from late March at .7023 to form an intermediate-term Double Top pattern.

The low -level consolidation into the end of May, pushing lower again into month end late last week, sustains very short-term bear forces and keeps both short- and the intermediate-term bear trends intact for early June and beyond.

Intermediate-term Outlook – Downside Risks: We see a downside risk for .6881.

  • Lower target would .6678 and .6500
  • What Changes This? Above .7016 shifts the outlook back to neutral; above .7166 is needed for a bull theme.

Daily AUDCHF Chart

audchf

Comments on this analysis


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