- NZD/CHF recovery capped below 5-DMA, bias still bearish.
- The pair has shown breach at channel base raising scope for further downside.
- Disappointing NZ trade balance data, which showed that the trade deficit widened more-than-expected weighs on the kiwi.
- The pair has broken minor support at 0.6819 levels - May 25th, 26th lows.
- Price action has slipped below weekly cloud and major moving averages. Technical studies support downside.
- Next major support at 0.6726 (38.2% Fib retrace of 0.57587 to 0.73242 rally).
- On the flipside, 5-DMA at 0.6833 offers immediate resistance, decisive close above could see minor upside.
Support levels - 0.68, 0.6783 (88.6% Fib retrace of 0.67182 to 0.72909 rally), 0.6726 (38.2% Fib retrace of 0.57587 to 0.73242 rally), 0.6718 (2017 low)
Resistance levels - 0.6833 (5-DMA), 0.6840 (78.6% Fib retrace of 0.67182 to 0.72909 rally), 0.6890 (trendline)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-CHF-breaks-major-support-at-06890-good-to-go-short-on-rallies-964059) has hit TP1/2/3.
Recommendation: Book partial profits at lows. Trail stop loss to 0.6840, stay short for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -46.7293 (Neutral), while Hourly CHF Spot Index was at -3.92339 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
