FxWirePro: AUD/CHF extends slide after rejection at 200-DMA, bias lower, stay short

• Aussie dumped in early Asia, was the worst performer amid AUD/NZD driven weakness and falling copper prices.
   
• AUD/CHF hit lows of 0.7435 before paring some losses to currently trade around 0.7442 levels.
   
• The pair is extending downside after failing to hold gains above200-DMA on Tuesday’s trade.
   
• RSI convergence with downside price action continues, suggesting more downswings on cards.
   
• On the weekly charts, price action has broken below 50-SMA at 0.7456.
   
• Major support seen at 0.7400 (trendline). Violation there could see 0.7250 levels.

Support levels: 0.74 (trendline), 0.7342 (Sept 30 low), 0.73, 0.7250 (trendline)

Resistance levels: 0.7450 (5-DMA), 0.7512 (200-DMA), 0.7544 (April 24 high), 0.7551 (38.2% Fib retrace of 0.7807 to 0.7394 fall)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-rejected-at-200-DMA-good-to-go-short-on-rallies-674041) has hit TP1. Bias lower.

Recommendation: Book partial profits at lows. Lower trailing stop to 0.7475. Hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -5.37776 (Neutral), while Hourly CHF Spot Index was at 49.4367 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.