FxWirePro: NZD/CHF hits 31-month lows at 0.6362, break below 61.8% Fib to see further weakness

NZD/CHF chart on Trading View used for analysis

• NZD/CHF slips lower to hit new 31-month lows at 0.6362, eyes 61.8% Fib at 0.6356.
   
• The pair has shown a break at major trendline support at 0.65, and breach at 61.8% Fib support to see further weakness.
   
• Kiwi dented after disappointing GDT auction. New Zealand's bi-weekly GDT auction showed that the GDT price index declined 0.7% following the 3.6% fall witnessed in the previous auction.
   
• Price action is testing new multi-month lows every day, as the 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.
   
• 21-EMA is stiff resistance at 0.6525. Break above could see extension of upside till 50-DMA at 0.6652.

Support levels - 0.6356 (61.8% Fib), 0.63

Resistance levels - 0.6406 (5-DMA), 0.65 (trendline support turned resistance)

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) is approaching final targets.

Recommendation: Watch out for break below 61.8% Fib for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -120.474 (Bearish), while Hourly CHF Spot Index was at 48.6886 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.