This is a very long-term play for me and I will be trying to build on this position in coming months. In very simple terms I’m bullish AUD and bearish CHF and the levels which the cross is currently trading at are historically quite low.
The daily chart is starting to obey some basic technical signals such as stalling at trend-lines and Fibo retracements which suggests to me that the market is looking for places to buy.
As with all crosses, patience is a virtue, and I think this trade will be a slow burner but with the Chinese economy picking up and with the real-money market sitting on massive CHF long positions, I see this particular carry trade as having plenty of upside.