FxWirePro: AUD/CHF capped below 5-DMA, bias lower, stay short

• Aussie catches a renewed bid-wave as markets continue to digest strong business confidence data out of Australia.
   
• Data released earlier today showed Australia business conditions index jumped 5 points, to +14 index points, its highest level since the Global Financial Crisis.
   
• Business confidence, however, fell 1 point, below the peaks of recent years to 6 points. 
   
• AUD/CHF finds strong support by daily cloud base at 0.7538, edges higher to currently trade at 0.7570.
   
• Upside remains capped at 5-DMA at 0.7576 and finds stiff resistance by 100-DMA at 0.7574. 
   
• Only close above 100-DMA could see upside. While on the flipside, break below cloud will accentuate weakness.
   
• Technical studies are bearish, break below daily cloud raises scope for test of 200-DMA at 0.7504. 
   
• Violation at 200-DMA to see test of 0.7475 and then 0.7435 (Nov 11 low).

Support levels - 0.7538 (cloud base), 0.7504 (200-DMA), 0.7475 (Mar 27 low), 0.7435 (Nov 11, 2016 low)

Resistance levels - 0.7576 (5-DMA), 0.76, 0.7610 (20-DMA), 0.7634 (April 5 high)

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-rejected-at-highs-on-track-to-test-200-DMA-at-075-good-to-short-rallies-634819). 

Recommendation: Hold for downside. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -61.4019 (Neutral), while Hourly CHF Spot Index was at -52.7514 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.