AUD/CHF is a great barometer of global risk. The CHF is considered to be a safe haven while the AUD is more reflective of ecomonic conditions, albeit off the back of a strong commodity focused economy. It is because of this that the move lower and under 0.85 isn't surprising as investors move to the safer CHF currency. More importantly, the pair has now broken below a massive support area indicating weakness in this pair. We like selling, but are waiting to see a bounce before selling this pair as selling at this point is certainly chasing the trade as it has moved down considerably in recent times.
The AUD/USD fell dramatcially on Tuesday as well, and has gone through the 1.07 level, towards a massive support area. Although the area looks supportive, it should be noted that the daily candle is closing right at the lows - never a good sign. We are waiting to see if there is any signs of support between 1.0750 and 1.08 before moving back towards this currency. For example a hammer might indicate that this pair will bound off support at around the 1.07 leve. One to watch closely!
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