FxWirePro: AUD/CHF extends weakness below daily cloud, on track to test 78.6% Fib at 0.6982

AUD/CHF chart on Trading View used for analysis

• AUD/CHF extends weakness below daily cloud, bias bearish.
   
• The pair is trading 0.20% lower on the day at 0.7055 at the time of writing.
   
• Price has broken below 61.8% Fib and is on track to test 78.6% Fib at 0.6982.
   
• Technical analysis supports weakness. Momentum highly bearish on daily and weekly charts.
   
• The pair has broken strong trendline support and is trading below major moving averages.
   
• Bollinger bands are widening suggesting rise in volatility and ADX supports downside.
   
• We also evidence bearish divergence on RSI and Stochs which adds to the bearish bias.

Support levels - 0.7036 (lower BB), 0.70, 0.6982 (78.6% Fib)

Resistance levels - 0.7107 (5-DMA), 0.7168 (21-EMA), 0.7202 (cloud top)

Recommendation: Good to go short on upticks, SL: 0.7110, TP: 0.7035/ 0.70/ 0.6985

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.