FxWirePro: AUD/CHF breaks major support at 0.7235, bias lower, good to short rallies

• AUD/CHF has broken below major trendline support at 0.7235, intraday bias lower.
   
• Aussie dented after China Caixin manufacturing PMI dipped into contraction territory in May, widely missing forecasts.
   
• China's Caixin manufacturing PMI for May arrived at 49.6 vs 50.1 expected and 50.3 last, slipping into contraction on slower increases in output and new orders.
   
• Slight rebound in Switzerland GDP after two disappointing quarters keeps CHF supported.
   
• Data released earlier today showed Switzerland Gross Domestic Product (YoY) climbed from previous 0.6% to 1.1% in 1Q.
   
• AUD/CHF is currently hovering around 61.8% Fib of 0.6752 to 0.7806 rise. Break below finds next major support at 0.7032 (June 16 2016 low).
   
• Bearish invalidation only on close above 20-DMA at 0.7305.

Support levels - 0.7155 (61.8% Fib), 0.7097 (June 24 2016 low), 0.7032 (June 16 2016 low)

Resistance levels - 0.7230 (5-DMA), 0.7235 (trendline support turned resistance), 0.7280 (50% Fib), 0.7305 (20-DMA)

Recommendation: Good to go short on rallies around 0.7190, SL: 0.7240, TP: 0.7155/ 0.71/ 0.7035

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -87.5413 (Bearish), while Hourly CHF Spot Index was at 126.388 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.