- AUD/CHF pauses downside and has edged higher as Aussies bulls found some respite from today's release of New Home Sales data.
- Data released earlier today by Australia's Housing Industry Association showed a 0.8% m/m rise in new homes sales, posting a strong rebound from 1.1% fall seen in March.
- The pair is currently hovering around 61.8% Fib retrace of 0.6752 to 0.7806 rise at 0.7155.
- Technical indicators are bearishly aligned, scope for further downside intact.
- Break below 0.7155 will see further drag. Bearish invalidation only on close above 20-DMA at 0.7305.
- Slight rebound in Switzerland GDP after two disappointing quarters keeps CHF supported.
- Data released yesterday showed Switzerland Gross Domestic Product (YoY) climbed from previous 0.6% to 1.1% in 1Q.
Support levels - 0.7155 (61.8% Fib), 0.7097 (June 24 2016 low), 0.7032 (June 16 2016 low)
Resistance levels - 0.7210 (5-DMA), 0.7235 (trendline support turned resistance), 0.7280 (50% Fib), 0.7296 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-breaks-major-support-at-07235-bias-lower-good-to-short-rallies-737400) has hit TP1.
Recommendation: Hold for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -159.306 (Bearish), while Hourly CHF Spot Index was at 38.525 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
