- AUD/CHF has erased losses and retraced back above 5-DMA currently at 0.7273.
- The pair finds major trendline support at 0.7235 and is extending recovery from 10-month lows at 0.7229.
- Bullish divergence on Stochs adds chances of near-term upside.
- However, price action is raging below 200-DMA and daily cloud and trend is lower.
- Technical indicators are still heavily bearish. Break below trendline at 0.7235 will see further drag.
- The pair is holding above 0.7280 (50% Fibo 0.6752 to 0.7806 rally). Next major resistance seen at 0.7360 (20-DMA).
- 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 - 0.7275 (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), 0.7360 (20-DMA)
Call update: We had advised a long on the pair (http://www.econotimes.com/FxWirePro-AUD-CHF-fails-to-close-below-major-trendline-support-at-07235-scope-for-upside-on-bullish-divergence-716893).
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 68.4425 (Neutral), while Hourly CHF Spot Index was at -105.5 (Bearish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
