AUD/CHF Technical Analysis: 200-day SMA caps gain amid soft Aussie data

• The 200-day SMA continues to restrict AUD/CHF gains on weaker than expected Australian building approvals.
• The pair can continue signaling 0.7170 support test unless clearing the 0.7225 SMA hurdle.

The Australian Dollar (AUD) trades around 0.7200 against the Swiss Franc (CHF) on early Monday. The AUD/CHF pair continues to trade under 200-day simple moving average (SMA) as softer than market consensus of +1.8% building approvals from Australia at -7.8% weakened the Aussie.

AUD/CHF: Daily chart

AUD/CHF tested the 200-day SMA, at 0.7225 now, multiple times during last-week without offering a successful upside break on a daily closing basis. With the Australian building approvals raising challenges for the Reserve Bank of Australia (RBA), the pair continued to trade under the important upside barrier on Monday.

As a result, the 0.7170 support regains sellers’ attention whereas 50-day and 100-day SMA confluence, around 0.7115-10, could limit the pair’s further downside. In case prices continue trading southwards past-0.7110, the 0.7040 and the 0.7000 psychological magnet could become bears’ favorites.

Meanwhile, a successful break of 0.7225 could help the pair to aim for 0.7250 and the 0.7280 nearby resistance whereas more than a yearlong descending resistance-line, at 0.7310, could play its role then after. Should there be additional upside past-0.7310, the 0.7370 and the 0.7400 may gain market attention.