FxWirePro: NZD/CHF extends channel break, hovers around 50% Fib at 0.6541, bias lower

Refer NZD/CHF chart on Trading View

• NZD/CHF extends channel breakout, trades 0.24% lower on the day at 0.6556 at the time of writing.
   
• Kiwi extends weakness after RBNZ's dovish surprise on Thursday. Further downside likely.
   
• 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.
   
• Channel breakout has opened up downside for the pair. Bears 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 - 0.66, 0.6649 (5-DMA), 0.6709 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-breaks-channel-base-support-on-track-to-test-618-Fib-at-06356-stay-short-on-upticks-1413999) has hit TP1.

Recommendation: Bias lower. Hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -32.9275 (Neutral), while Hourly CHF Spot Index was at 27.0931 (Neutral) at 1025 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.