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FxWirePro: AUD/CHF breaks below daily cloud, on track to test 38.2% Fib at 0.7045

AUD/CHF chart - Trading View 

  • AUD/CHF extends weakness below cloud, Aussie depressed following the release of the dismal Australian home loans data.
     
  • Australia home loans fell 2.5% in March, reversing the 2% rise seen in February, missing expectations for a 0.5% rise. 
     
  • The latest data will likely boost dovish expectations from the Reserve Bank of Australia’s (RBA).
     
  • Antipodeans also under pressure as Sino-US trade war shows little signs of de-escalation. 
     
  • On Saturday, Trump warned China on retaliatory tariffs. While, China warned Trump not to underestimate China’s will and endurance to fight. 
     
  • Price action has been capped below 200-DMA and break below daily cloud has opened up further downside.
     
  • Next major support lies at 38.2% Fib at 0.7045. Break below will see dip till 0.6975 (50% Fib).
     
  • Cloud top caps upside at 0.7084. Break above could see retrace till 200-DMA. 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CHF-Trade-Idea-1535504) is progressing well.

Recommendation: Hold for targets.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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