- NZD/CHF has managed to break above major resistance zone at 0.6916 to 0.6928 (convergence of major EMAs).
- The break has opened upside for the pair. 50-DMA is immediate resistance and we see scope for test of 0.70 levels on break above.
- The major is trading in a rising channel and price has bounced off channel base, scope for further upside.
- Price action has just entered daily cloud and decisive break above will propel the pair higher.
- 200-DMA at 0.6911 is strong support. Close below negates bullish bias.
Support levels - 0.6916 (5-DMA), 0.6911 (200-DMA) 0.69, 0.6875 (June 8 low)
Resistance levels - 0.6960 (50-DMA), 0.6993 (cloud top), 0.7045 (May 7, 8 high)
Recommendation: Good to stay long on close above 0.6930, SL: 0.6910, TP: 0.6950/ 0.70/ 0.7045
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 146.262 (Bullish), while Hourly CHF Spot Index was at -68.2966 (Neutral) at 1245 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
