- AUD/CHF trades with a bearish bias, down 0.16% on the day, at around 0.7306 levels.
- The pair is in the red for a 3rd consecutive session, is on track to test major trendline support at 0.7275.
- Break below 0.7275 to see further weakness. Scope then for test of 0.7020 (61.8% Fib retrace of 0.6533 to 0.7807 rally).
- The pair is trading in a rising Wedge pattern on weekly charts and price action is currently hovering around Wedge base.
- Technical studies are bearish. Price action is below cloud and major EMAs.
- We see spinning top formation at lows in the previous weeks’ candle and upside was capped at 5W SMA.
Support levels - 0.7275 (major trendline), 0.7170 (50% Fib retrace of 0.6533 to 0.7806 rally), 0.7020 (61.8% Fib)
Resistance levels - 0.7381 (20-DMA), 0.7383 (5W SMA), 0.74
Recommendation: Good to go short on short on break below 0.7275, SL: 0.7385, TP: 0.72/ 0.7170/ 0.71/ 0.7020.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -123.845 (Bearish), while Hourly CHF Spot Index was at 71.4651 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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