FxWirePro: AUD/CHF breaks below 200-DMA, on track for further downside

Chart - Courtesy Trading View 

Spot Analysis:

AUD/CHF was trading 0.82% lower on the day at 0.6746 at around 10:45 GMT

Previous Week's High/ Low: 0.7045/ 0.6912

Previous Session's High/ Low: 0.7002/ 0.6743

Fundamental Overview:

The Swiss franc was buoyed across the board after Swiss National Bank (SNB) surprised markets with a 50 bps rate hike on Thursday.

In the policy statement that followed, the SNB left the door open for further rate hikes to counter rising inflationary pressures. 

The hawkish central bank outcome boosted the Swiss franc across the board and prompted aggressive selling around the pair.

Technical Analysis:

- AUD/CHF is extending previous session's slump, extends break below daily cloud

- The pair has slipped below 200-DMA and 50% Fib

- Momentum is strongly bearish, Stochs and RSI are sharply lower

- The pair has retraced below 200-week MA after 'Inverted Hammer' on the previous week's candle

- Volatility is high and rising, MACD and ADX support downside in the pair

Major Support and Resistance Levels:

Support - 0.6672 (61.8% Fib), Resistance - 0.6765 (200-DMA)

Summary: AUD/CHF trades with a bearish bias. Close below 200-DMA will reinforce downside in the pair. Scope for test of 61.8% Fib at 0.6672.