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FxWirePro: AUD/CHF slips below daily cloud, momentum bearish, short break below 0.7515

  • AUD/CHF down 0.21% on the day, trades around 0.7533 levels, bias lower.
     
  • Price action has dipped below daily Ichi cloud and 38.2% Fibo at 0.7548.
     
  • Momentum studies are bearish, stochs are sharply lower. RSI weakness seen below 50 levels and biased lower.
     
  • The pair is trading in a rising wedge pattern and finds strong support at wedge base at 0.7515.
     
  • Breakout below wedge base will see further weakness, scope then for test of 61.8% Fibo at 0.7395.
     
  • On the flipside, 100-DMA at 0.7607 is major resistance, bearish invalidation on break above.

Recommendation: Good to go short on break below 0.7515, SL: 0.7610, TP: 0.75/ 0.7420/ 0.74

Support levels  Resistance levels 
S1: 0.7515 (Wedge base) R1: 0.7548 (38.2% Fib)
S2: 0.75 (Jan 25 low) R2: 0.7607 (100-DMA)
S3: 0.7395 (61.8% Fib - 0.7146 to 0.7797) R3: 0.7641 (20-DMA)

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -109.771 (Bearish), while Hourly CHF Spot Index was at 26.0783 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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