FxWirePro: AUD/CHF hits 2-year lows at 0.7130, bias lower, stay short

AUD/CHF chart on Trading View used for analysis

• AUD/CHF extends grind lower along 5-DMA, hits 2-year lows at 0.7130.
   
• Technical analysis supports bearish bias, we see scope for further weakness.
   
• Upside remains capped at 5-DMA and major moving averages are sloping downward.
   
• Momentum studies are highly bearish, RSI biased lower and below 50 levels.
   
• Price is falling in a downward sloping channel and next major bear target lies at channel base at 0.71 levels.
   
• On the flipside break above 5-DMA finds next major resistance at 21-EMA at 0.7244.
   
• Violation at channel top reverses downtrend in the pair.

Support levels - 0.7130 (session low), 0.71 (channel base), 0.7032 (2016 low)

Resistance levels - 0.7169 (5-DMA), 0.7246 (21-EMA), 0.73

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CHF-Trade-Idea-1420997) has hit TP1/2.

Recommendation: Book partial profits. Hold for further weakness. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -146.048 (Bearish), while Hourly CHF Spot Index was at 78.759 (Neutral) at 0945 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.