- AUD/CHF breached 50-DMA resistance at 0.7379 last week and bias remains higher.
- The pair is currently attempting break above stiff trendline resistance at 0.7435.
- Momentum studies are bullish, break above trendline eyes 100-DMA at 0.7508.
- On the downside, we see weakness on fall below 50-DMA at 0.7373. Test of 0.73 (23.6% Fib) then likely.
- Markets focus on RBA June monetary policy meeting minutes scheduled to be released on June 20 for further direction.
- RBA Gov Philip Lowe said that he remains optimistic about the economic and financial condition of the country in the foreseeable future, but warned of political opposition to reform.
Support levels - 0.7398 (38.2% Fib of 0.7807 to 0.7147 fall), 0.7377 (5-DMA), 0.7373 (100-DMA)
Resistance levels - 0.7435 (trendline), 0.7476 (50% Fib), 0.7508 (100-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-breaks-above-50-DMA-hovers-around-074-handle-bias-higher-759805) is approaching TP1.
Recommendation: Book partial profits at highs, raise trailing stops to 0.7375, hold for 0.7495/ 0.75080.7550
