FxWirePro: AUD/CHF recovers from multi-week lows, Aussie supported after surprise PBoC RRR cut

AUD/CHF chart - Trading View 

AUD/CHF was trading 0.43% higher on the day at 0.6822 at around 10:30 GMT.

The pair has breached 200-DMA support and hit multi-week lows at 0.6781 before paring some losses.

The Australian dollar caught some traction across the board after surprise PBoC RRR cut 

In an unexpected move, the People’s Bank of China (PBOC) cut the Reserve Ratio Requirement (RRR) for banks by 50 bps with effect from July 15.

This is the first RRR cut announcement since April 2020 and offered an extra lifeline to the AUD bulls, pushing the pair higher.

Technical bias for the pair remains bearish, break below 20-DMA has opened up downside in the pair.

Bears likely to target 61.8% Fib at 0.6710. Bearish invalidation only on retrace above 200-DMA.