FxWirePro: AUD/CHF breaks below 50-DMA, good to go short on rallies

• AUD/CHF rejected at cloud, edges lower from multi-week highs at 0.7430.
   
• The pair has edged lower to break below 50-DMA and bias lower.
   
• Downside has hit fresh weekly lows of 0.7334, has since pared losses to currently trade at 0.7351.
   
• Close below 50-DMA at 0.7365 has raised scope for further drag lower, test of 0.73 (23.6% Fib) now likely.
   
• Technical indicators have turned slightly bearish, Stochs are on verge of bearish rollover.
   
• On the upside, decisive break above daily cloud could see test of 200-DMA at 0.7496.

Support levels - 0.7334 (session low), 0.73 (23.6% Fib), 0.7280 (June 13 low)

Resistance levels - 0.7381 (5-DMA), 0.7398 (38.2% Fib of 0.7807 to 0.7147 fall), 0.7430 (trendline), 0.7496 (200-DMA)

Recommendation: Good to go short on rallies around 0.7360, SL: 0.74

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -101.279 (Bearish), while Hourly CHF Spot Index was at -24.5783 (Neutral) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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