For any financial market the longer time scale always prevails and it is therefore on all occasions a good idea to take a broader view to sail with the wind for increased probability of investment success.

On the FOREX market AUD/CHF must be one of the weakest currency pair. The exchange rate is capped by down-trending moving averages from the daily to the yearly time scale (only monthly, quarterly and yearly scales shown in the technical price chart here below) with potential support lines all pointing downwards. Most particularly the yearly 7-period moving average is pounding heavily on the rate.

Dynamic Volatility AUD/CHF Price Chart – Monthly + Quarterly + Yearly

This is a high-probability scenario for the Aussie to slide against the Swiss Franc in the weeks ahead and for the exchange rate to slide below 0.6.

This scenario will remain valid as long as the pair does not close above the levels identified by the downwards pointing red arrows that could serve as stop loss levels for any short selling position on the pair.

Real Time AUD/CHF Weekly Price Chart