FxWirePro: NZD/CHF hits 5-week highs at 0.7142, bias higher, stay long

• Kiwi faded a minor-recovery attempt triggered by upbeat New Zealand GDP figures.
   
• Sharp drop seen in the NZ credit card spending data along with looming elections drag the bird lower.
   
• NZD/CHF hit 5-week highs at 0.7142 before edging lower to currently trade at 0.7110 levels.
   
• Switzerland SECO economic forecasts which will be released at 0545 GMT, followed by August trade balance report at 0600 GMT in focus for further impetus.
   
• Technical studies support upside, cloud offers strong support, break below could see minor weakness.
   
• On the weekly charts, the pair is trading in a rising channel with strong channel base support at 0.6895.
   
• Bullish invalidation seen on retrace below 200-DMA at 0.7039. Scope then for test of channel base support at 0.6895.

Support levels - 0.7081 (cloud base), 0.7050 (5-DMA), 0.7039 (200-DMA), 0.7014 (38.2% Fib retrace of 0.72909 to 0.68442 fall)

Resistance levels - 0.7120 (61.8% Fib), 0.7142 (session high), 0.72, 0.7295 (trendline)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-CHF-breaks-200-DMA-good-to-go-long-on-dips-target-07120-909030) has hit TP1.

Recommendation: Book partial profits at highs. Stay long for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 63.5995 (Neutral), while Hourly CHF Spot Index was at -87.9714 (Bearish) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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