FxWirePro: NZD/CHF capped at 61.8% Fib, breakout to see further upside

• NZD/CHF spikes past 5-DMA to hit fresh highs for the week at 0.7066.
   
• Upside was capped at 61.8% Fib retrace of 0.72909 to 0.67066 fall at 0.7067.
   
• The pair has bounced off 20-DMA with a hammer formation which raises scope for upside.
   
• Technical indicators are also biased higher. RSI is above 50 levels and biased higher, Stochs show bullish momentum.
   
• On hourly charts, price has broken strong trendline resistance at 0.7015 and has edged above major EMAs which are biased higher.
   
• Above 61.8% Fib the pair finds next major resistance at 0.7090 (major trendline). Breakout there sees further upside till 0.7165 (78.6% Fib).
   
• On the flipside, 20-DMA is major support, break below to see bullish invalidation.

Support levels - 0.7025 (5-DMA), 0.70 (50% Fib retrace of 0.7290 to 0.6706 fall), 0.6988 (20-DMA)

Resistance levels - 0.7038 (Jan 18 high), 0.7067 (61.8% Fib), 0.7094 (Jan 12 high)

Call update: Our previous call has hit TP1. Bias higher.

Recommendation: Book partial profits at highs. Stay long

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 119.359 (Bullish), while Hourly CHF Spot Index was at -114.081 (Bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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