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Forex pairs in this Article » USD/CHF
FXstreet.com (Athens) – The AUD/CHF is trading amidst a very congested range on Asian’s Wednesday’s trading session after four consecutive ‘red’ daily closes.

AUD/CHF in consolidation mode; both components suffer

The AUD/CHF has been trading amidst a congested area since the early kick off of the Wellington trading session after a 4-day downwards trend shift, accompanied with sharp losses of roughly 156 pips (7th November opening -0.8886- to 12th November close -0.8529). Today the Australian WPI (Wage Cost Index), put additional pressures on the Aussie since the data released showed that in the third quarter the wage cost index rose just 0.5% on a quarterly basis (0.7% consensus) and 2.7% annually (2.9% consensus). What’s more, the new vehicle sales were down 3.1% on a year-on-year basis, thus, the data added an additional pressure on the Aussie.

Technical Aspects

The cross is under a strong bearish daily momentum, having broken crucial supports. The pair has broken decently the 61.8% Fibonacci retracement of the upwards movement as of the 1st of October (0.8410) to the 7th November (0.8751), which resides at the 0.8540 area. Lower, solid supports could be found at the 76.4% Fib at the 0.8491, which in case is breached, would probably drag the cross lower near the 0.8300 handle. Above, the cross should make a clear daily close above the 0.8540 zone, in order to move higher near the 50% Fibonacci retracement at 0.8581, followed by 38.20% Fib. at 0.8621.
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