- AUD/CHF is struggling to extend positive momentum, slips lower from highs of 0.7546.
- The pair finds major resistance at 0.7540 (converged 200-DMA and major trendline). We see further upside only on break above.
- Aussie slumps across the board as Australia March retail sales data missed estimates by a big margin.
- According to data released by the Australian Bureau of Statistics (ABS), retail sales stalled in March missing Reuters estimate of a 0.3% m/m growth.
- Investors will now likely scale back the RBA tightening expectations in response to weak retail sales release.
- Technical indicators do not show signs of reversal, but we evidence bearish divergence on Stochs which raises scope for downside.
- 5-DMA at 0.7518 is immediate support, break below will see drag till cloud top. Breach at cloud top could see further weakness.
Support levels - 0.7519 (5-DMA), 0.75, 0.7481 (20-DMA)
Resistance levels - 0.7538 (200-DMA), 0.7567 (Apr 19 high), 0.76
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CHF-breaks-out-of-daily-cloud-eyes-200-DMA-at-07540-stay-long-1290006) has hit TP1.
Recommendation: Book partial profits at highs, trail SL to 0.75. Watchout for break out at 0.7540 for further upside.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
