FxWirePro: AUD/CHF finds strong support at 0.7270, good to go short on break below

• AUD/CHF down 0.53 percent on the day, pauses at major trendline support at 0.7270.
   
• The pair has broken below channel base support at 0.7415, bias lower.
   
• Price action below 200-DMA and daily cloud. Technical indicators are heavily bearish.
   
• RSI converging with price action and break below major support at 0.7270 will see drag lower.
   
• We see scope for test of 0.7170 (50% Fib retrace of 0.6533 to 0.7806 rally).
   
• Bearish invalidation only on close above 200-DMA currently at 0.7510.

Support levels - 0.7243 (Nov 9 2016 low), 0.72, 0.7170 (50% Fib retrace of 0.6533 to 0.7806 rally)

Resistance levels - 0.73, 0.7320 (38.2% Fib), 0.7363 (5-DMA)

Recommendation: Watch out for break below 0.7270 to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -6.35838 (Neutral), while Hourly CHF Spot Index was at 94.7835 (Bullish) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.