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FxWirePro: AUD/CHF extends bounce off 21-EMA support, scope for upside resumption

AUD/CHF chart - Trading View 

Technical Analysis: Bias turning Bullish

- AUD/CHF was trading 0.57% higher on the day at 0.6778 at around 12:35 GMT

- The pair has resumed upside after price action bounced off 21-EMA support on Wednesday's trade

- A 'Hammer' formation on the previous session's candle reinforces bullish bias

- Price action has re-entered into the daily cloud, breaks above 55-EMA

- Momentum is bullish and volatility is high raising scope for continuation of bullish momentum

Fundamental Overview:

Data released by the Australian Bureau of Statistics earlier on Thursday showed Australia jobless rate dropped to 4.5% in August from 4.9% in June.

The employment rate dropped by 146K as compared to the market consensus of 90K, while ‘hours worked’ witnesses a huge drop of 3.7% in July. 

Further, the inflation expectations in Australia eased to 3.30% in August from 3.70% in July.

Support levels - 0.6761 (55-EMA), 0.6736 (21-EMA), 0.6713 (20-DMA)

Resistance levels - 0.6798 (38.2% Fib), 0.6815 (110-EMA), 0.6820 (Cloud top)

Summary: AUD/CHF is set to resume upside after price has bounced off 21-EMA support. The pair is on track to test 110-EMA at 0.6815. Break above will fuel further gains. Bullish invalidation on retrace below 21-EMA. 

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