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FxWirePro: AUD/CHF trades rangebound above 21-EMA support, outlook bearish

AUD/CHF chart - Trading View AUD/CHF was trading rangebound on the day at 0.6263 at around 10:35 GMT. Upside in the pair has found exhaustion and we see signs of bearish reversal. Dismal Aussie data and pessimism surroun…

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FxWirePro: AUD/CHF trades rangebound above 21-EMA support, outlook bearish
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AUD/CHF chart - Trading View 

AUD/CHF was trading rangebound on the day at 0.6263 at around 10:35 GMT. Upside in the pair has found exhaustion and we see signs of bearish reversal.

Dismal Aussie data and pessimism surrounding the US-China trade/political tussle weigh on the pair.

Australian economy shed a record 594.3K jobs in April, while the seasonally adjusted jobless rate rose less-than-expected to 6.2%.

US-China tension intensified after Trump ordered a Federal retirement savings fund to delay diversifying into Chinese stocks.

Price action has slipped below 5-DMA and 5-DMA has turned lower. Price action has failed to hold above 110-EMA.

Volatility is low and 'Bearish Divergence' on the daily charts adds to the bearish bias. We see strong support at 21-EMA at 0.6230. Break below will see further weakness.

Next major support below 21-EMA lies at 50% Fib at 0.6115 ahead of daily cloud at 0.5977.

Bounce off 21-EMA negates bearish bias. Break above 200-DMA (0.6524) opens upside.
 

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