FxWirePro: AUD/CHF holds 20-DMA support, weakness likely on decisive break below

AUD/CHF chart on Trading View used for analysis

• AUD/CHF has paused 4 straight sessions of downside, trades 0.24% higher on the day.
   
• The pair is holding support at 20-DMA at 0.6998, break below will see further weakness.
   
• Aussie extends gains across the board after an above-forecast of China services PMI.
   
• China's Caixin Services PMI clocked in at a surprising 53.1 for the month into September, bettering estimates for a reading of 51.5.
   
• Technical studies for the pair are bearish, we do not see any major signs of reversal.
   
• Decisive break below 20-DMA will see further weakness, scope then for test of 0.68 levels.

Support levels - 0.6998 (20-DMA), 0.6877 (Sept 10, 18 low), 0.68 (78.6% Fib)

Resistance levels - 0.7020 (61.8% Fib), 0.7027 (converged 21-EMA and 5-DMA), 0.7112 (55-EMA)

Recommendation: Stay short on decisive break below 20-DMA, SL: 0.7030, TP: 0.6880/ 0.68

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -25.7159 (Neutral), while Hourly CHF Spot Index was at -25.4966 (Neutral) at 1015 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.