FxWirePro: NZD/CHF holds 20-DMA support, break below to see further weakness

NZD/CHF chart on Trading View used for analysis

• NZD/CHF pauses downside at 20-DMA support at 0.6822, bias bearish.
   
• Technical indicators support weakness. Price was rejected at highs with a Gravestone Doji formation on 4th Dec.
   
• The pair has been extending weakness since and has fallen below 5-DMA.
   
• 5-DMA has turned lower and Stochs have rolledover from overbought levels, RSI is biased lower.
   
• Bearish divergence on RSI and Stochs adds to bearish bias. Break below 20-DMA to see extension of weakness.
   
• Next major support below 20-DMA lies at 23.6% Fib at 0.6791. Further weakness will see test of 200-DMA at 0.6744.

Support levels - 0.6791 (23.6% Fib), 0.6744 (200-DMA), 0.67

Resistance levels - 0.6870 (5-DMA), 0.6919 (Upper BB), 0.6939 (Dec 4 high)

Recommendation: Good to stay short on upticks, SL: 0.6885, TP: 0.6815/ 0.6745 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-Trade-Idea-1468976) has hit TP1.

Recommendation: Book partial profits, stay short for further downside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.