AUD/CHF short setup on 'Bearish Bat' formation
AUD/CHF pauses downside at 100-DMA support at 0.7468, we see weakness on break below.
The pair has failed to extend gains above 200-DMA, and is retracing from 3-month highs at 0.7567.
Price action hovers around daily Ichimoku cloud, and break below 100-DMA raises scope for test of 21-EMA at 0.7433.
We evidence a 'Bearish Bat' formation on daily charts which adds to the bearish bias.
Stochs are on verge of a rollover from overbought levels and bullish momentum is fading.
Violation at 21-EMA will see further weakness. While on the flipside, 200-DMA is major resistance, any further upside only on decisive break above.
Focus now on Australia inflation numbers, weak data could push the Aussie lower.
Support levels - 0.7468 (100-DMA), 0.7433 (21-EMA), 0.7428 (38.2% Fib), 0.74
Resistance levels - 0.7502 (5-DMA), 0.7544 (converged 200-DMA & 61.8% Fib), 0.7567 (Apr 19 high)
Good to go short on break below 100-DMA, SL: 0.75, TP: 0.7430/ 0.74/ 0.7360.
The pair has failed to extend gains above 200-DMA, and is retracing from 3-month highs at 0.7567.
Price action hovers around daily Ichimoku cloud, and break below 100-DMA raises scope for test of 21-EMA at 0.7433.
We evidence a 'Bearish Bat' formation on daily charts which adds to the bearish bias.
Stochs are on verge of a rollover from overbought levels and bullish momentum is fading.
Violation at 21-EMA will see further weakness. While on the flipside, 200-DMA is major resistance, any further upside only on decisive break above.
Focus now on Australia inflation numbers, weak data could push the Aussie lower.
Support levels - 0.7468 (100-DMA), 0.7433 (21-EMA), 0.7428 (38.2% Fib), 0.74
Resistance levels - 0.7502 (5-DMA), 0.7544 (converged 200-DMA & 61.8% Fib), 0.7567 (Apr 19 high)
Good to go short on break below 100-DMA, SL: 0.75, TP: 0.7430/ 0.74/ 0.7360.
Comment:
TP1 hit. Pair holding support at 55-EMA. Weakness only on break below.