FxWirePro: AUD/CHF trades in narrow range ahead of RBA, finds major resistance at 0.74

• AUD/CHF trades in narrow range ahead of the Reserve Bank of Australia's (RBA) monetary policy decision on Tuesday, 4th July.
   
• The RBA's commentary has suggested that the housing market boom had been the key reason that it is not considering further cuts.
   
• However, investors remain wary after today dismal Australia housing data which showed Australia May building permits tanked 5.6% m/m, widely missing expectations at -1.3%.
   
• AUD/CHF price action has pierced into daily cloud, but finds stiff resistance at 0.74 levels (trendline).
   
• Bullish Stochs divergence keeps scope for upside, break above 0.74 could see test of 200-DMA at 0.7495.
   
• On the flipside, break below 5-DMA could see drag lower. Test of June 28 low at 0.7273 then likely.
   

Support levels - 0.7334 (converged 5&20 DMA), 0.73 (23.6% Fib retrace of 0.7807 to 0.71467 fall), 0.7273 (June 28 low)

Resistance levels - 0.74 (trendline), 0.7495 (200-DMA), 0.7554 (61.8% Fib)

Recommendation: Good to go long on decisive break above 0.74, SL: 0.7330, TP: 0.7495/ 0.7520/ 0.7550

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