- SNB maintains status quo, leaves deposit rate unchanged at -0.75%, failed to provide any fresh impetus.
- Renewed concerns over a global trade war lending some support the Swiss Franc's safe-haven appeal.
- AUD/CHF slips lower below 5-DMA support at 0.7442, currently trades at 0.7425, intraday bias lower.
- Technical studies are turning slightly bearish. Stochs are on the verge of a rollover from overbought levels.
- Upside remains capped below 50-DMA and daily cloud also weighs on the upside.
- We evidence bearish divergence from price action on RSI and Stochs which adds to bearish bias.
- Price has slipped below hourly cloud and is on track to test 200-SMA at 0.7395. Violation there could see further weakness.
Support levels - 0.7395 (1H 200-SMA), 0.7364 (20-DMA), 0.7334 (61.8% Fib retrace of 0.7242 to 0.7483 rally)
Resistance levels - 0.7442 (1H 55-EMA & 5-DMA), 0.7467 (50-DMA), 0.75
Recommendation: Good to go short on rallies around 0.7425/35, SL: 0.7450, TP: 0.7395/ 0.7365/ 0.7335
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