FxWirePro: AUD/CHF pauses downside at 21-EMA (0.7430), further weakness only on decisive break below

• Australia's inflation figures for Q1 showed a mixed picture, largely disappointing, keeping rate hikes off the table.
   
• Data released earlier today showed Australia Q1 CPI headline q/q came in at +0.4% vs 0.5% expected and 0.6% prior.
   
• The core figures, came in a tad firmer at 1.9% vs 1.8% expected, still well below the Reserve Bank of Australia’s (RBA) 2-3 percent target range.
   
• The pair is extending weakness after a 'Bearish Bat' formation on daily charts.
   
• Other indicators also support weakness. Stochs have rolled over from overbought levels and bullish momentum is fading.
   
• The pair has broken below 100-DMA and is currently pausing downside at 21-EMA at 0.7430, break below will see further weakness.
   
• On the flipside, retrace above 100-DMA could see some upside and we see bearish invalidation only above 200-DMA.

Support levels - 0.7430 (converged 38.2% Fib & 21-EMA), 0.74, 0.7357 (23.6% Fib)

Resistance levels - 0.7467 (100-DMA), 0.7480 (5-DMA), 0.75, 0.7544 (converged 200-DMA & 61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CHF-falters-at-200-DMA-Bearish-Bat-formation-raises-scope-for-downside-1265717) has hit TP1.

Recommendation: Book partial profits at lows. Watch out for break below 21-EMA for further weakness.

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