FxWirePro: NZD/CHF breaks channel base support, on track to test 61.8% Fib at 0.6356, stay short on upticks

Refer NZD/CHF chart on Trading View

• NZD/CHF trades 1.37% lower on the day as kiwi hammered lower post RBNZ's dovish tweak.
   
• RBNZ held rates as expected, but surprised markets by revising lower the Sept 2019 interest rate forecast to 1.8 percent from the previous 1.9 percent.
   
• Further, RBNZ governor Orr said the central bank expects the interest rates to stay at the current level of 1.75 percent through 2019 and into 2020.
   
• NZD/CHF has hit 2 1/2 year lows at 0.6603 and we see scope for further weakness.
   
• The pair has breached channel base support and is on track to test 61.8% Fib at 0.6356.
   
• On the flispide, retrace into channel could negate bearish bias.

Support levels - 0.6541 (50% Fib), 0.6356 (61.8% Fib)

Resistance levels - 0.6685 (5-DMA), 0.6727 (21-EMA), 0.6789 (50-DMA)

Recommendation: Good to stay short on upticks, SL: 0.6685, TP: 0.6545/ 0.6460 (Apr 2016 low), 0.6356 (61.8% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -109.527 (Bearish), while Hourly CHF Spot Index was at 128.273 (Bullish) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.