The birth of a new safe haven currency

The ongoing Russian invasion and associated risk-free mode has spawned a new safe haven currency – the Australian dollar (and New Zealand dollar as well).

One thing is that the Australian dollar is a base currency and we all know that commodities are currently skyrocketing. Another thing is that Australia is very far from any potential conflict. And in this case, we can see a real pattern. The euro is much weaker than the British pound, the German stock market is weaker than the American stock market and well, the Polish currency and stock exchange are practically destroyed.

Surprisingly enough, the AUD is even stronger than the CHF – the true benchmark for safe havens! So in today’s analysis we take a look at AUDCHF.

Last week, the pair managed to create a major long-term buy signal. The buy signal comes from the price breaking the upper line of the flag formation (blue). The flag was a big downside correction of a post-covid recovery.

The new week is also off to a good start. The price is currently breaking the 23.6% Fibonacci, which actually paves the way for the top from February 2021. As for the supports, we have plenty of them. First, the upper flag line, then we have one at 0.667, then the mid-term red bullish trendline, which supports the price in 2022.

With all of this, the sentiment on AUDCHF is definitely positive and a bearish reversal would be a pretty huge surprise.

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