FxWirePro: AUD/CHF recovery capped at 5-DMA, bias bearish

AUD/CHF chart - Trading View 

• AUD/CHF is trading largely unchanged at 0.7083 at 1045 GMT, bias bearish.
   
• Negative news out of China weighs on the antipodeans, keeping downside pressure.
   
• China services purchasing managers’ index (PMI) for February came in at 51.1, missing the estimate of a rise to 53.8 from the previous month’s print of 53.6. 
   
• Further, China revised lower the gross domestic product (GDP) estimate to 6.0–6.5% range for 2019. 
   
• Sentiment based on the US-China trade deal developments will continue to affect price movements.
   
• Recovery attempts in the pair remain capped at 5-DMA, break above required for further upside.
   
• The pair is consolidating previous session slump, after rejection at 200-DMA. We see scope for weakness till daily cloud. 
   
• Break below cloud could drag the pair till 0.6958 (Jan 10 low). Bearish invalidation only above 200-DMA.

Support levels - 0.7076 (Feb 8 low), 0.7023 (38.2% Fib), 0.6958 (Jan 10 low)

Resistance levels - 0.7093 (5-DMA), 0.7130 (50% Fib), 0.7187 (200-DMA) 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CHF-fails-at-200-DMA-good-to-stay-short-on-rallies-1504703) has hit TP1.

Recommendation: Book partial profits at lows, stay short for further weakness.   

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