- AUD/CHF struggles to hold break above 5-DMA at 0.7503, trades 0.32% lower on the day.
- Price action rages below 200-DMA (0.7544) and daily cloud, bias lower.
- Technical studies are bearish on daily, weekly and monthly charts.
- -ve DMI dominance continues and ADX which is above 25 levels and rising supports trend lower.
- The pair finds strong trendline support at 0.7465, break below to accentuate weakness.
- Next major support below 0.7465 lies at 0.7395 (61.8% Fib retrace of 0.71467 to 0.77966 rally).
- On the flipside, we see bearish invalidation only above 200-DMA at 0.7544.
Support levels - 0.7475 (Mar 27 low), 0.7565 (July 24 low), 0.74, 0.7320 (38.2% Fib retrace of 0.65334 to 0.78069 rally)
Resistance levels - 0.75 (converged 5-DMA and 23.6% Fib retrace of 0.65334 to 0.78069 rally), 0.7544 (200-DMA), 0.7601 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-breaks-below-200-DMA-good-to-go-short-on-rallies-1017483) is progressing well.
Recommendation: Bias lower, stay short.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -7.35416 (Neutral), while Hourly CHF Spot Index was at 136.778 (Bullish) at 0820 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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