AUDCHF: Safe-Heaven Time After last week's joint military actions by the USA and UK against Houthi Rebels in the Red Sea, markets are exercising heightened caution amidst the potential for new conflicts to emerge. In such uncertain scenarios, safe-haven currencies like the Swiss Franc stand to benefit. Another pivotal factor supporting this notion is the recent elections in Taiwan, where the USA-backed candidate emerged victorious, indicating that the island may seek support from Washington against China's territorial claims, as hinted by President Xi in his New Year speech.
Adding to the rationale is China's slower-than-expected recovery, underscored by last week's discouraging economic data on inflation. This suggests that the world's second-largest economy continues to grapple with challenges in its recovery process.
From a technical analysis perspective:
Entry is positioned at the previous support, now functioning as resistance.
Stop Loss is set at 1 ATR (Average True Range) above the entry point.
Take Profit is targeted at the next support level, maintaining a 1:2 Risk-Reward ratio.
Stay tuned for more trades and analyses like this, and feel free to share your opinions in the comments below! 📈🤔
