FxWirePro: AUD/CHF breaks below 0.69 handle, on track to test 78.6% Fib, stay short

AUD/CHF chart on Trading View used for analysis

• AUC/CHF consolidates break below 61.8% Fib, bias lower.
   
• The pair has broken below 0.69 handle and is currently trading at 0.6891, down 0.13% on the day.
   
• Aussie largely muted despite upbeat China inflation data. China CPI rose 2.3 percent y/y in August, beating estimates for a rise of 2.1 percent and compared to a 2.1 percent rise in July. 
   
• Meanwhile, PPI, fell to 4.1 percent in August from the July print of 4.6 percent but still bettered estimates of 4.1 percent. The drop in the PPI could add to the bearish tone around the Aussie dollar.
   
• Technical studies in the pair are bearish. Price action below major EMAs and momentum with the bears.
   
• We see scope for test of 78.6% Fib at 0.6805. Bearish invalidation only above 50-DMA at 0.7256.

Support levels - 0.6832 (Jan 2015 low), 0.6805 (78.6% Fib), 0.6678 (88.6% Fib)

Resistance levels - 0.6941 (5-DMA), 0.70, 0.7087 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CHF-Trade-Idea-1425516) is proceeding well.

Recommendation: Stay short for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -32.9275 (Neutral), while Hourly CHF Spot Index was at 27.0931 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.