FxWirePro: AUD/CHF slumps to fresh 4-month lows, bias lower

• Aussie continues to trade under immense pressure, AUD/CHF slumps to fresh 4-month lows.
   
• Aussie double whammy from hawkish FOMC monetary policy statement and disappointing release of Australian trade balance data and China Caixin Services PMI.
   
• A modest recovery in copper prices, and RBA Governor Lowe’s comments failed to lend any immediate respite.
   
• RSI convergence with downside price action continues, suggesting more downswings on cards.
   
• The pair has breached major trendline support at 0.74 raising scope for test of 0.7250 levels.
   
• On the weekly charts, price action has broken below 50-SMA at 0.7456.

Support levels - 0.7342 (Sept 30 low), 0.73, 0.7250 (trendline)

Resistance levels – 0.74 (trendline), 0.7428 (5-DMA), 0.7505 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-rejected-at-200-DMA-good-to-go-short-on-rallies-674041) is approaching final targets.

Recommendation: Book full profits at lows. We recommend fresh shorts on break below 0.7320.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -158.734 (Bearish), while Hourly CHF Spot Index was at 80.6063 (Bullish) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.