- NZD/CHF has shown a break above 200-DMA at 0.7039, bias higher.
- Kiwi remains buoyed as latest polls show outright majority for ruling government.
- Technical studies support upside in the pair, we see scope for test of 61.8% Fib at 0.7120.
- Break above finds next major resistance at 0.7295 (major trendline).
- On the weekly charts, the pair is trading in a rising channel with strong channel base support at 0.6895.
- Break below channel base invalidates bullish bias. Scope then for test of 0.6718 (May 2017 low).
Support levels - 0.7030 (200-DMA), 0.7014 (38.2% Fib retrace of 0.72909 to 0.68442 fall), 0.7005 (5-DMA)
Resistance levels - 0.7120 (61.8% Fib), 0.72, 0.7295 (trendline)
Recommendation: Good to go long on dips around 0.7050, SL: 0.6970, TP: 0.7120/ 0.72/ 0.7295
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 45.0922 (Neutral), while Hourly CHF Spot Index was at 18.3102 (Neutral) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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