So the Reserve Financial institution of Australia (RBA) raised its rates of interest.

Whereas Governor Lowe and his crew acknowledged that inflation has handed its peak, they felt that 7% continues to be too excessive. They raised RBA’s rates of interest by one other 25 foundation factors to 4.10% and repeated that “Some additional tightening of financial coverage could also be required” to assist return inflation to RBA’s targets.”

Since there have been no less than many merchants priced in that the RBA would maintain its charges regular, the “shock” price hike despatched AUD larger in opposition to its counterparts.

AUD/CHF, particularly, jumped from its ranges close to the .6000 psychological deal with to commerce nearer to .6040.

However AUD is having hassle extending its positive aspects. One attainable motive is that Aussie bulls haven’t damaged above the .6050 resistance since mid-April.

Simply examine the 4-hour chart beneath!

AUD/CHF 4-hour Foreign exchange Chart by TV

Coincidentally, at present’s highs additionally line up with the S2 (.6040) of at present’s Commonplace Pivot Factors on the 15-minute time-frame.

Will this result in AUD/CHF seeing a pullback after a pointy upswing?

AUD/CHF 15-min Foreign exchange Chart by TV

A more in-depth take a look at the 15-minute chart exhibits that the .6000 – .6010 zone is a fairly busy space that would appeal to a brand new spherical of consumers.

Not solely does the zone line up with this week’s vary, nevertheless it’s additionally close to the 100 and 200 SMAs, pattern line help, and the Pivot Level degree close to .6000.

A pullback to .6000 – .6010 may set AUD bulls for a very good entry in case AUD/CHF extends its June uptrend.

AUD/CHF consumers can goal the .6040 – .6050 resistance whereas putting stops just below the pattern line help.

RBA Governor Lowe is about to ship a speech later at present and Australia will probably be printing its GDP knowledge within the subsequent Asian session buying and selling.

If these occasions reinforce the RBA’s hawkish resolution, then AUD/CHF may see new month-to-month highs.

Good luck and ensure to observe AUD/CHF’s each day common volatility so you understand the place to put your entry and exit targets!

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