- AUD/CHF hovers around 5-DMA support at 0.7339, further weakness likely on break below.
- The pair is trading in a rising Wedge pattern on weekly charts and price action is currently hovering around Wedge base.
- Technical studies are bearish. Price action is below cloud and major EMAs.
- The pair trades with bearish bias on the weekly charts, extends weakness for 4th consecutive week.
- We see Doji formation at lows in the day's candle till now which shows indecision.
- The pair is struggling to hold onto recovery gains which were capped below 0.74 handle.
- Break below 5-DMA support could see test of 0.7220 levels (88.6% Fib). We see bearish invalidation above 200-DMA.
Support levels - 0.7339 (5-DMA), 0.7250 (Wedge base), 0.7220 (88.6% Fib retrace of 0.7146 to 0.7796 rally)
Resistance levels - 0.74, 0.7467 (5W-SMA), 0.7487 (20-DMA), 0.7530 (200-DMA)
Recommendation: Good to go short on break below 5-DMA, SL: 0.74, TP: 0.7285/ 0.7220
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