Jobs data came out weaker than expected for Australia recently.
Is AUD/CHF on track for a bearish breakout soon?
Australian dollar / swiss franc forex 1 hour Planned by TV
AUD/CHF has been swinging back and forth between resistance at 0.6020 and support around 0.5875 for almost a month already.
The price is currently stuck above an area of interest in the middle of its range, and the technical indicators as well as those lower highs suggest that downward pressure is building.
The 100 SMA is below the 200 SMA to reflect bearish momentum, while the 200 SMA has recently held as dynamic resistance. To make the higher, Stochastic has room to head lower before signaling exhaustion among the sellers.
A break below current levels near the minor psychological handle .5950 could start a move to S1 (.5930) or a full drop to S2 (.5900) near the bottom of the range.
Note that AUD/CHF is moving Average 52.2 points per dayso range support should be within walking distance if a short-term breakdown occurs.
Fundamentals also seem to agree with the Australian dollar lower, as the employment numbers haven’t been very impressive lately.
For example, the quarterly wage price index fell short of estimates with a 0.8% increase for the first quarter, indicating weaker inflationary pressures. Additionally, today’s jobs report revealed a 4.3K employment loss instead of the expected gain of 24.8K for April.
As for the franc, there has been no economic data out of Switzerland recently, leaving the lower-yielding currency to benefit from risk-off inflows. So far, uncertainty surrounding the US debt ceiling issue and banking sector woes is supporting safe havens.
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