FxWirePro: NZD/CHF fades retail sales led spike, finds stiff resistance at 21-EMA (0.6635)

Refer NZD/CHF chart on Trading View

• NZD/CHF fades retail sales led spike, edges lower from session highs at 0.6615.
   
• The kiwi was buoyed after New Zealand real retail sales smashed all forecasts to print at +1.1% q/q.
   
• Also, general improved tone in risk sentiment across markets has helped the bird to recover.
   
• Technical indicators are turning slightly bullish, stochs show a rollover from oversold levels.
   
• We evidence bullish divergence on Stochs and CCI and MACD is on verge of a bullish crossover on signal line.
   
• We note here that the major trend in the pair is bearish, but signs of minor pullback seen.
   
• 21-EMA offers stiff resistance. Break above could see extension of upside.

Support levels - 0.6587 (5-DMA), 0.6512 (Aug 15/16 low)

Resistance levels - 0.6635 (21-EMA), 0.67, 0.6726 (50-DMA)

Recommendation: Stay long on break above 21-EMA, target 0.6730/ 0.6775/ 0.68 

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 131.952 (Bullish), while Hourly CHF Spot Index was at -93.3853 (Bearish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.