FxWirePro: AUD/CHF edges higher from 2-1/2 year lows at 0.6951, bias lower, good to stay short on upticks

AUD/CHF chart on Trading View used for analysis

• AUD/CHF recovers from new 2-1/2 year lows at 0.6951 and is currently trading at 0.6977.
   
• Aussie under pressure from downbeat data and escalating China tensions.
   
• Australia retail sales growth stalled m/m in August, missing forecasts at 0.3 percent. 
   
• Escalating tensions with China over ban Huawei mobile phones to add to the downside pressure. 
   
• Souring risk sentiment in the emerging markets and commodity space will further exacerbate the Aussies declines.
   
• Technical studies support further weakness. Since momentum indicators have approached oversold levels, we may see minor upside.
   
• The pair is in a major bear trend and we see no major signs of reversal. Reversal in trend likely only above 110-EMA at 0.7347. 
   
• Price action has broken below 61.8% Fib and major trendline support at 0.70. Eyes 78.6% Fib at 0.6805.

Support levels - 0.69/ 0.6805 (78.6% Fib), 0.6752 (Feb 2016 low)

Resistance levels - 0.70, 0.7020 (61.8% Fib), 0.7046 (5-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CHF-breaks-channel-base-support-hits-new-2-year-lows-at-07061-bias-lower-1421828) has hit all targets.

Recommendation: Book partial profits at lows, trail SL to 0.7020, hold for further downside, target 0.69/ 0.68.

Fresh shorts can be entered on upticks, SL: 0.7050, TP: 0.69/ 0.6810.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -155.304 (Bearish), while Hourly CHF Spot Index was at 102.795 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.