- The Aussie dollar has plunged during the trading session on Friday, as risk off continues to be the main thing that traders are paying attention to the Swiss franc.
- The franc is a safety currency, but at the same time, the Australian dollar is considered to be a riskier currency.
- Beyond that, we also have to keep in mind that the Australian dollar did not perform fairly well against the US dollar during the day, which was a very telling.
The market is likely to continue to be very noisy, but at this point in time, you should also take a look at this through the prism of the 0.55 level being a massive floor in the market. And as long as that holds, there is probably more risk to the upside than down. I mean, we are at extreme lows not seen since 2020. It's almost as if negativity has gotten so far ahead of itself. There's almost nobody left to sell.
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Not Necessarily a Buy
Now, that's not me suggesting that you should buy it. I'm just saying the opportunity may end up presenting itself. However, if we were to break down below the 0.55 level, it's likely that the market could go looking to the 0.54 level. That's an area where we had snapped back from previously rather rapidly. And with that being the case, I think you have to look at the prism of a market that's trying to find a range, possibly at the bottom of it. So, I am watching this very closely because I think we could end up seeing a snapback. I would probably buy something else against the Swiss franc, but this would be a huge signal that this started to rise, that maybe you want to buy other currencies against the franc, maybe like the dollar.
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