- AUD/CHF extends weakness after upside was rejected at daily cloud.
- The pair is trading 0.67% lower on the day at 0.7347 at the time of writing.
- We evidence a 'Shooting Star' pattern formed on the daily charts which supports further weakness in the pair.
- Price action has retraced below 21-EMA and 5-DMA, eyes major trendline support (Triangle Base) at 0.7280.
- Breach at 'Triangle Base' raises scope then for test of 0.7242 (2018 lows).
- MACD and ADX in support of further weakness. Stochs are on verge of rollover from oversold levels and RSI shows weakness.
- Bearish invalidation only on break above cloud base.
Support levels - 0.73, 0.7280 (trendline), 0.7263 (Mar 28 low), 0.7242 (2018 lows till date)
Resistance levels - 0.7366 (5-DMA), 0.7370 (21-EMA), 0.74
Recommendation: Good to stay short on upticks, SL: 0.7375, TP: 0.73/ 0.7280/ 0.7245
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -163.888 (Bearish), while Hourly CHF Spot Index was at 27.4375 (Neutral) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
