- AUD/CHF is seen consolidating massive slump on the previous day, trading a narrow range as we head into the EU session.
- The pair hit fresh 2-week lows at 0.7568 before paring some losses to close at 0.7594.
- Safe haven demand boosted CHF as markets spooked amidst intensifying tensions between US and North Korea.
- Technically, the pair is extending downside after completing a 'Bearish Bat Pattern' on daily charts.
- We also note bearish divergence of price action from RSI and Stochs which adds bearish bias.
- The pair has closed below 20-DMA and we see scope for test of 200-DMA at 0.7502.
- On the flipside, we see bearish invalidation only on close above 5-DMA at 0.7662.
Support levels - 0.7536 (38.2% Fib 0.7146 to 0.77778 rally), 0.7502 (200-DMA), 0.7465 (July 24 low)
Resistance levels - 0.7624 (20-DMA), 0.7628 (23.6% Fib), 0.7662 (5-DMA), 0.77
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-slumps-massive-140-pct-on-the-day-CHF-spikes-on-risk-off-844510) holds.
Recommendation: Stay short for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -89.2468 (Slightly bearish), while Hourly CHF Spot Index was at 114.57 (Bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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