FxWirePro: NZD/CHF breaks below 61.8% Fib, hits 3-year lows at 0.6337, bias lower

NZD/CHF chart on Trading View used for analysis

• NZD/CHF breaks below 61.8% Fib, hits news lows at 0.6337, levels unseen since Oct 2015.
   
• Price action is testing new multi-month lows every day, bias still bearish for the pair.
   
• Kiwi remains offered across the board in response to poor NZ data and growing conviction among markets that the next RBNZ policy move will be a cut - rather than a hike.
   
• The pair trades with a major bearish bias on weekly charts. Major trend is bearish, minor pullbacks can be used to stay short in the pair.
   
• Break below 61.8% Fib has raised scope for further weakness. Scope now for test of 0.62 (July 2015 low) ahead of 78.6% Fib at 0.6093.
   
• 21-EMA is stiff resistance at 0.6496. Break above could see extension of upside till 50-DMA at 0.6637.

Support levels - 0.63, 0.62 (July 2015 low), 0.6093 (78.6% Fib)

Resistance levels - 0.6356 (61.8% Fib), 0.6378 (5-DMA), 0.6496 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-hits-29-month-lows-kiwi-offered-across-the-board-in-response-to-dismal-ANZ-business-confidence-reading-1421910) has hit all targets.

Recommendation: Book partial profits. Trail SL to 0.6380, hold for further weakness. TP: 0.63/ 0.62.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -76.6573 (Bearish), while Hourly CHF Spot Index was at 98.8292 (Bullish) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.