- NZD/CHF consolidates break below 200-DMA, trades largely unchanged on the day.
- The pair hovers around 61.8% Fibo support at 0.6864, break below will see further weakness.
- NZD on the defensive on dampening data for the New Zealand economy.
- Markets are likely pushing out expectations of any rate hikes from RBNZ into 2019.
- Momentum studies bearish, RSI below 50 and biased south. We see -ve DMI dominance and ADX rising in support.
- Break below 200-DMA has raised scope for further weakness. Scope for test of 0.6780 (major trendline support).
- On the flipside, retrace and close above 200-DMA at 0.6919 negates bearish bias.
Support levels - 0.6865 (61.8% Fib), 0.68, 0.6795 (78.6% Fib), 0.6780 (trendline)
Resistance levels - 0.6919 (200-DMA), 0.6927 (100-DMA), 0.6966 (21-EMA), 0.70
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-Trade-Idea-1308659) has hit all targets.
Recommendation: Good to go short on break below 61.8% Fib, SL: 0.6920, TP: 0.68/ 0.6755/ 0.6740.
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