- AUD/CHF is trading in a narrow range in the Asian session today, bias lower.
- Recovery in the pair was capped below 50-DMA on Thursday's trade. We see upside only on break above.
- The pair was rejected at cloud base and is extending downside from multi-week highs at 0.7430.
- 0.73 (converged 20-DMA and 23.6% Fib retrace of 0.7807 to 0.7147 fall) is likely the next bear target.
- Technical indicators have turned bearish, Stochs have shown a rollover from overbought levels and are biased lower.
- MACD line is on verge of a bearish crossover on signal line.
- Bearish invalidation only on a decisive break above daily cloud, test of 200-DMA at 0.7496 then likely.
Support levels - 0.73 (converged 20-DMA and 23.6% Fib), 0.7280 (June 13 low), 0.7264 (June 9 low)
Resistance levels - 0.7354 (50-DMA), 0.7358 (5-DMA), 0.7398 (38.2% Fib of 0.7807 to 0.7147 fall), 0.7430 (trendline), 0.7496 (200-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-breaks-below-50-DMA-good-to-go-short-on-rallies-769678) is progressing well .
Recommendation: Stay short for 0.73/ 0.7280/ 0.7265
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -61.3268 (Neutral), while Hourly CHF Spot Index was at 106.08 (Bullish) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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