- AUD/CHF breaks above 5-DMA at 0.7271 as the pair extends recovery from 10-month lows at 0.7229.
- The pair finds major trendline support at 0.7235 and has failed to close below on Monday's trade.
- Price action is raging below 200-DMA and daily cloud. Technical indicators are still heavily bearish.
- But bullish divergence on Stochs raises chances of near-term reversal. Close above 5-DMA could see further upside.
- The pair has broken above 0.7280 (50% Fibo 0.6752 to 0.7806 rally).
- Weakness seen on break below support at 0.7235, drag upto 0.7170 (50% Fib retrace of 0.6533 to 0.7806 rally) then likely.
Support levels - 0.7271 (5-DMA), 0.7235 (Trendline), 0.72, 0.7170 (50% Fib retrace of 0.6533 to 0.7806 rally)
Resistance levels - 0.73, 0.7320 (38.2% Fib), 0.7376 (20-DMA)
Recommendation: Good to go long on dips around 0.7280/85, SL: 0.7230, TP: 0.7320/ 0.7375
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 83.7607 (Bullish), while Hourly CHF Spot Index was at -76.4569 (Bearish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
