This Analysis is brought to you by PROFIFOREX AUD/USD Current trend On Monday, the pair was in an upward direction. There is growing pressure on the pair in face of concerns regarding a slowing Chinese economy which gained an increase following the weakening of the Yuan against USD, a percentage exceeding 1.5%. For now, investor nurse worries about a drop in demand in China for commodities and a move to damp currencies, which include the Australian Dollar. In Australia, data coming out on Friday indicated a drop in Retail Sales as compared to the last month to 0.4% which added pressure on the pair. Support and resistance A week ago, the price broke down on the lower border of an ascending which was short termed as the price broke down the lower border of a short-term ascending channel at the 0.6908 level as well as fall in the direction of 0.6800 and 0.6700. The pair is trading on the daily chart close to the lower MA of Bollinger Bands. The MACD histogram happens to be in the negative zone with an increasing volume. The RSI is also close to the oversold zone. There is suggestion from the indicators that the pair could further decline. Support levels:0.6908, 0.6800, 0.6700 Resistance levels: 0.7076, 0.7200, 0.7360 TRADING TIPS Open short positions from the 0.6900; targets at 0.6800, 0.6700 and then stop-loss at 0.6920. Open long positions after the price has consolidated on top the 0.7080 level; targets at 0.7200 with 0.7050 as stop loss. USD/CHF Current trend The USD/CHF fell last week showing choppy trading. The USD/CHF came under heavy pair owing to discouraging macroeconomic data coming from China which produced serious worry on the market even pushing investors to transfer their funds into safe-haven currencies, one of which is the franc. It faced moderate pressure from data emanating from Switzerland. There was no change in the unemployment rate as it remained at 3.4% and then there was a fall of 1.3% in December for the Consumer Price Index as measured against a November fall of 1.3%. Also at that very period, when the week finished, the pair got support getting more strengthened following the release of a strong labour market data which was quite unexpected. Support and resistance There is horizontal movement on the daily chart by the Bollinger Bands. MACD is falling hence bringing forth a sell signal which is a strong one. Approaching the oversold zone is the Stochastic which reduces the chances of a further drop. The indicators suggest that we wait for more convincing and clear signals to trade with. Support levels: 0.9900 (this is a local low), 0.9879 (this is also a local low), 0.9851 (a low of December 24) Resistance levels: 0.9944 ( this is a local high), 1.0000 ( this happens to be a vital psychological level), 1.0032 TRADING TIPS Open long positions following the breakout of the 1.0000 level with 1.0130 targets and stop loss placed at 1.0130. Open short positions following the breakdown of the 0.9900 with targets at 0.9800 as well as stop loss at 0.9940. EUR/USD Current trend When last week finished, the pair noticeably got strengthened in face of heavy macroeconomic statistics coming from the United States. Released Non-Farm Payroll came out at 292,000 which were reasonably more encouraging than forecasts had predicted. Also occurring at that very time, the pair came under pressure from data released on the Consumer Credit Change. There was no change in the Average Hourly Earnings despite a 0.2% predicted growth. Support and resistance Support levels: 1.0900 and then Resistance levels:1.0993 TRADING TIPS Open short positions from the 1.0993 level with targets at 1.0942 taking 1.1015 as stop loss.