FxWirePro: AUD/CHF fails at 200-DMA, good to stay short on break below daily cloud

• AUD/CHF fails to extend upside beyond 200-DMA, resumes downside after hitting highs of 0.7583.
   
• Focus now on the Reserve Bank of Australia’s (RBA) monetary policy decision, scheduled to be held by early next week. 
   
• Technical studies are biased lower. Convergence in RSI and Stochs seen with price action.
   
• The pair has broken below 100-DMA and -ve DMI dominance adds to the bearish bias and MACD is biased lower.
   
• Price action has dipped into daily Ichimoku cloud and break below cloud base will see further weakness.
   
• Next major support on the downside lies at 61.8% Fib at 0.7372 ahead of major trendline support at 0.7330.
   
• On the upside, 110-EMA at 0.7471 is capping, break above to see test of 200-DMA at 0.7524.

Support levels - 0.7412 (50% Fib), 0.7405 (cloud base), 0.7372 (61.8% Fib), 0.7330 (trendline)

Resistance levels - 0.7471 (110-EMA), 0.75, 0.7524 (200-DMA)

Recommendation: Good to go short on break below daily cloud, SL: 0.7471, TP: 0.7375/ 0.7330/ 0.73.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 19.1599 (Neutral), while Hourly CHF Spot Index was at 41.2699 (Neutral) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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