FxWirePro: NZD/CHF eyes 200-DMA at 0.7027, bias higher, stay long

• NZD/CHF hovers around 100-DMA at 0.7009, intraday bias higher.
   
• The pair is extending upside for 3rd consecutive session after bouncing off strong trendline support at 0.6880.
   
• Technical indicators have turned bullish, RSI and Stochs are biased north and MACD is showing a bullish crossover.
   
• Price action has pierced into daily cloud and hovers around 100-DMA at 0.7009.
   
• Break above 100-DMA finds next major resistance at 200-DMA at 0.7027. Violation at 200-DMA could propel the pair to test 0.7070 (converged cloud top and Triangle top).
   
• Upbeat China inflation data to support the antipodeans. China's producer price index jumped 6.9% year-on-year in September, beating the estimates at 6.6%.
   
• On the flipside, we see weakness on break below 5-DMA at 0.6944. Scope then for test of 0.6880, 0.6850 and then 0.6766 levels.

Support levels - 0.6992 (20-DMA), 0.6980 (50-DMA), 0.6949 (38.2% Fib retrace of 0.7324 to 0.6718 fall), 0.6944 (5-DMA)

Resistance levels - 0.7027 (200-DMA), 0.7068 (cloud top), 0.7092 (61.8% Fib)

Call update: We had suggested a long on the pair (https://www.econotimes.com/FxWirePro-NZD-CHF-breaks-5-DMA-good-to-go-long-on-break-above-06982-950242).

Recommendation: Bias higher, pace stops at 0.6945, stay long for 0.7027/ 0.7065/ 0.7090.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 138.69 (Bullish), while Hourly CHF Spot Index was at -85.42 (Slightly bearish) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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