The CHF or Swiss Franc is considered a safe haven currency. How is it trading in the market right now? By comparing two pairs in which the base currencies are different you can determine how the CHF might react to different news and investors. Foreign exchange rates might trade in a similar pattern or completely opposite when you have a different base pair.
Foreign Exchange Rates Examining USD/CHF
Trading currencies is not easy. It takes discipline and careful study. A one day picture of different currency pairs may still result in confusion for a beginner. As a means of discussing some of the things that can happen in two different pairs where the quote currency is the same, mid July 2013 was examined. The USD/CHF on the 19th declined by .0024 or .26 per cent.
At the very beginning of the day a clear head and shoulders or triple top indicator appeared. Triple tops seen on foreign exchange rates graphs means the previous trend will reserve. The day before there was an increase for CHF rates meaning a better value for the USD. This trend reversed first thing when the first market opened for the day. Its reversal eventually ended in a period of consolidation that lasted at least four hours. At the end of the range trading a reversal for a small uptrend appeared, but there was not a new high. The trend change happened almost an hour after the European open. For a time it looked like the USD would be favoured for the day, but instead a new reversal to a downtrend occurred, and though some profit taking occurred foreign exchange rates for the USD/CHF have been in favour of the CHF where a new low was created.
Foreign Exchange Rates for AUD/CHF
The AUD/CHF pairing is slightly different, but still trending down. It had a loss of .0011 or .12 per cent. The pair started off mostly in consolidation, but if you examine the simple moving average line there was a clear downswing until about 7am GMT time. Indicators appeared showing that a slight increase but still a ranging trade appearance would follow.
As with the USD/CHF the AUD/CHF increased, presumably due to European news now that the market had a chance to open. When you see a certain trend like an increase with a European quote currency it generally means news was unfavourable for Europe. A decrease would mean better news. This is only if the quote currency is European like the USD and AUD pairing with the CHF.
Two things about the foreign exchange rates are apparent. The USD did not move as much as the AUD on the increase. It suggests forex news for the USA is suspected to be less than favourable on its open. In fact the reversal for both pairings turned the uptrend to a downtrend at different decelerations and rate spans. It would suggest that by the time the USA opened news was not good and thus the AUD/CHF with its clearer indicators might be worthy of trading.
Note that this is just one day and when you study these pairs you might see something completely different.