- 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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