- AUD/CHF recovers part of RBA led slump, hovers around 5-DMA at 0.7353.
- The Aussie came under intense selling pressure after RBA retained its neutral monetary policy stance and reiterated risks associated with rising exchange rate.
- On the other side, risk-off amid escalating N.Korea tensions pushed safe haven Franc higher weighing further on the pair.
- AUD/CHF slipped lower to hit session lows at 0.7315, but has found strong support at cloud base at 0.7321.
- Upside finds stiff resistance at 0.7390 levels (trendline), break above required for further upside.
Support levels - 0.7321 (cloud base), 0.73 (23.6% Fib retrace of 0.7807 to 0.71467 fall), 0.7273 (June 28 low)
Resistance levels - 0.7390 (trendline), 0.74 (38.2% Fib), 0.7470 (cloud top), 0.7495 (200-DMA)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -53.4754 (Neutral), while Hourly CHF Spot Index was at -130.349 (Bearish) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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