- Offered tone around the Aussie dollar gathers pace ahead of the RBA rate decision.
- The central bank is likely to keep rates unchanged at 1.5%, any bearish bias could weigh heavily on the AUD.
- Recent AUD strength and the drop in Q4 inflation could see some jawboning attempts.
- AUD/CHF capped below major trendline resistance at 0.7635 and has slipped below 5-DMA.
- We see scope for test of 0.7509 (50-DMA) if the pair manages to close below 5-DMA.
- Bearish RSI divergence on daily charts adds to bearish bias.
Support levels - 0.7576 (session low), 0.7562 (20-DMA), 0.7525 (Feb 2 low), 0.7509 (50-DMA)
Resistance levels - 0.7582 (5-DMA), 0.7635 (trendline), 0.7641 (Feb 3rd high)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Bearish Neutral
1W Bullish Neutral
Call update: Our long call (http://www.econotimes.com/FxWirePro-AUD-CHF-finds-major-resistance-at-07635-break-above-to-test-07744-523586) is in threat. Close below 5-DMA will see drag upto 0.75 levels. Caution advised.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -34.3276 (Neutral), while Hourly CHF Spot Index was at -50.4605 (Bearish) at 0155 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
