FxWirePro: AUD/CHF fails to extend break above 200-DMA, good to stay short on upticks

AUD/CHF chart on Trading View used for analysis

• AUD/CHF has retraced below 200-DMA, intraday bias lower.
   
• The pair has failed to extend break above 200-DMA, slips lower with a spinning top formation at highs.
   
• Risk-off action on the Asian equities and a non-eventful RBA minutes keep the Aussie on the back-foot.
   
• Technical indicators have turned bearish. Stochs and RSI have rolled over from overbought levels and are biased lower.
   
• MACD is showing a bearish crossover on signal line and we also evidence a bearish divergence on RSI and Stochs which adds to the bearish bias.
   
• Next major support lies at 110-EMA at 0.7198 ahead of daily cloud at 0.7138. We see bearish invalidation only on decisive breakout at 200-DMA.

Support levels - 0.7198 (110-EMA), 0.7138 (cloud top)

Resistance levels - 0.7278 (5-DMA), 0.7294 (200-DMA), 0.73

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Stay-long-AUD-CHF-on-cloud-breakout-and-bullish-momentum-1451906) has hit all targets.

Recommendation: Good to stay short on upticks, SL: 0.7280, TP: 0.72/ 0.7140

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