FxWirePro: AUD/CHF extends gains above 88.6% Fib, Aussie buoyed by upbeat China Caixin manufacturing PMI

• Aussie extends upbeat Chinese PMI-led gains, AUD/CHF is currently trading up 0.37% on the day.
   
• China July Caixin manufacturing PMI, came in at 51.1 vs. 50.4 expected remained supportive of the bid tone surrounding the major.
   
• RBA left the official cash rate unchanged at 1.5%, as expected, markets largely unimpressed.
   
• The pair has broken above weekly 200-SMA at 0.7623 and major trendline resistance at 0.7690.
   
• Technical indicators support further upside, bullish invalidation only on break below weekly 200-SMA support at 0.7623.

Support levels - 0.7731 (88.6% Fib retrace of 0.7806 to 0.7146 fall), 0.77, 0.7665 (78.6% Fibo)

Resistance levels - 0.7807 (Feb 2017 high), 0.7896 (61.8% Fib of 0.8740 to 0.6533 fall), 0.80

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-edges-lower-from-fresh-4-month-highs-at-07750-bias-higher-826557) has hit TP1.

Recommendation: Bias higher, stay long.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 24.7372 (Neutral), while Hourly CHF Spot Index was at -55.9758 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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