- AUD/CHF has slumped a massive 1.40% on the day to hit fresh 2-week lows at 0.7568.
- The Swiss franc was the top performer on the day, as markets spooked amidst intensifying tensions between US and North Korea.
- Technically, we note a 'Bearish Bat Pattern' on AUD/CHF daily charts which combined with bearish divergence has seen downside.
- We see scope for further downside. 200-DMA at 0.7502 is next likely bear target.
- On the flipside, we see bearish invalidation only on close above 5-DMA at 0.7680.
Support levels - 0.7536 (38.2% Fib 0.7146 to 0.77778 rally), 0.7502 (200-DMA), 0.7465 (July 24 low)
Resistance levels - 0.7617 (20-DMA), 0.7628 (23.6% Fib), 0.7680 (5-DMA), 0.77
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Bearish-Bat-Pattern-on-AUD-CHF-good-to-go-short-on-close-below-5-DMA-838505) has hit all targets.
Recommendation: Book partial profits at lows. Lower trailing stops to 0.7635. Hold for 0.7540/ 0.75.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -68.5803 (Neutral), while Hourly CHF Spot Index was at 112.694 (Bearish) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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