- AUD/CHF rejected at session highs at 0.7343, slips lower to currently trade at 0.7326 levels.
- The antipodeans remain depressed after weaker-than-expected China PMI data.
- China's PMI came in at 51.0, missing 51.7 expected and compared to the previous period's reading of 51.6.
- Price action finds stiff resistance at 4H 200-SMA at 0.7349, break above could see further upside.
- Technical indicators on intraday charts are neutral. RSI below 50 levels. Stochs are biased lower and MACD is below zero levels.
- That said, we see bullish divergence on RSI and Stochs which keeps scope for upside in the pair.
- Break below major support at 0.7260 will see further weakness. Scope then for test of 0.7148 levels.
Support levels - 0.7317 (5-DMA), 0.7266 (Feb 9th low), 0.7260 (trendline), 0.7242 (March 2 low)
Resistance levels - 0.7349 (4H 200-SMA), 0.7362 (20-DMA), 0.74
Recommendation: Watch out for break above 4H 200-SMA to go long, SL: 0.7315, TP: 0.7375/ 0.74.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
