- We note a 'Bearish Bat Pattern' on AUD/CHF daily charts, scope for downside.
- 5-DMA has turned and oscillators are on verge of a rollover from overbought levels.
- Bearish divergence adds support for downside in the pair.
- The pair is hovering around 5-DMA and decisive close below would see further downside.
- Immediate support on the downside seen at 0.7628 (23.6% Fib of 0.71467 to 0.77778 rally).
- Bearish invalidation on retrace above 5-DMA at 0.7713.
Support levels - 0.77, 0.7665 ((78.6% Fibo of 0.8740 to 0.6533 fall), 0.7628 (23.6% Fib of 0.71467 to 0.77778 rally), 0.7575 (20-DMA)
Resistance levels - 0.7807 (Feb 2017 high), 0.7896 (61.8% Fib of 0.8740 to 0.6533 fall), 0.80
Recommendation: Good to go short on close below 5-DMA, SL: 0.78, TP: 0.7670/ 0.7630/ 0.7575
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 68.1476 (Bearish), while Hourly CHF Spot Index was at 42.837 (Neutral) at 1020 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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