The Aussie dollar has been choppy earlier on Monday, as we are looking at an uptrend that continues to be noisy, but positive.
AUD/CHF
The Aussie dollar has been very noisy during the trading session on Monday, and the 0.5680 level, and this is an area that continues to be very important. It was a previous resistance barrier; now it is trying to offer a bit of support. If we can break to the upside, then it opens up the possibility of a move to the 0.5725 level. If we can break above there, then it's likely that we continue to go much higher.
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Short-term pullbacks open up the possibility of buying opportunities near the 50-day EMA. The 50-day EMA is an area that I think is going to keep the uptrend somewhat intact. Keep in mind that the Swiss National Bank wants a weaker Swiss franc, and of course, the Australian dollar is highly tethered to various commodities, copper, iron, aluminum, etc. As long as those are doing fairly well, that gives a little bit of a boost for Australia as well.
SNB Policy and Commodity Strength Support Uptrend
Ultimately, this is a nice uptrend; it's been in a nice uptrend for some time, and it's likely that we continue to see buyers on dips. You get paid at the end of every day. I don't have any issue holding this currency pair, at least not until we break down below the 0.55 level, and we're nowhere near that right now.
Keep in mind that this is a slow-moving pair like most franc-denominated pairs, but ultimately we are in a nice uptrend. We're in an area of interest obviously, but until we turn around and break down significantly, you have to assume that the overall momentum is still with the buyers here.
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