AUD/CHF Sees Attractive Long-Term Carry Trade Opportunities

The AUD/CHF currency pair has been in a tight range for three and a half weeks, fluctuating between 60 pips. Despite this limited volatility, Christopher Lewis, a technical analyst at DailyForex, sees value in buying the Australian dollar against the Swiss franc.

Lewis notes that the interest rate differential between the two currencies is wide enough to drive a truck through, making it an attractive market for the longer-term carry trade. However, he also acknowledges that this market requires patience and that the 50-day EMA at 0.5775 level has been acting as a trend line.

Lewis's strategy involves buying the AUD/CHF pair with a stop-loss at 0.5750 and targeting 0.60. He believes that value hunters will continue to take advantage of dips in this market, which he thinks will rise due to the Australian central bank's hawkish stance compared to the Swiss National Bank's zero interest rate policy.

Lewis also mentions that a potential shift towards the Swiss franc for safety could temporarily turn around the market. However, he believes this would be a short-term phenomenon.