FxWirePro: AUD/CHF falters at 200-DMA, 'Bearish Bat' formation raises scope for downside

• AUD/CHF fails to extend gains above 200-DMA, retraces from 3-month highs at 0.7567.
   
• The pair has broken below 5-DMA and price currently is holding support at daily cloud.
   
• We evidence a 'Bearish Bat' formation on daily charts which adds to the bearish bias.
   
• Stochs are on verge of a rollover from overbought levels and bullish momentum is fading.
   
• The pair finds next major support at 100-DMA at 0.7468, break below will see further weakness.
   
• On the flipside, 200-DMA is major resistance, any further upside only on decisive break above.

Support levels - 0.7468 (100-DMA), 0.7429 (converged 38.2% Fib & 21-EMA), 0.74

Resistance levels - 0.7499 (5-DMA), 0.7544 (converged 200-DMA & 61.8% Fib), 0.7567 (Apr 19 high)

Recommendation: Good to go short on break below 100-DMA, SL: 0.75, TP: 0.7430/ 0.74/ 0.7360.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -97.8933 (Bearish), while Hourly CHF Spot Index was at 6.16669 (Neutral) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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