NZD/CHF chart on Trading View used for analysis
- NZD/CHF is extending weakness for the 3rd straight session.
- The pair is trading 0.33% lower on the day at 0.6784 at 0645 GMT.
- Kiwi dented after the RBNZ said that an increase in bank capital requirement could lead to an interest rate cut.
- RBNZ's Dep Gov Geoff Bascand said that the central bank is planning to hike capital requirements for the bank.
- He added that the resulting tightening of financial conditions could be countered with the help of an interest rate cut.
- Technical indicators for the pair on daily charts have turned bearish. RSI has fallen below 50 and is biased lower.
- We see -ve DMI crossover which adds to the bearish bias.
- The pair is currently holding above strong support at 55-EMA at 0.6766. Break below will see weakness.
- Scope for test of 200-DMA at 0.6689. Violation at 200-DMA could see test of trendline support at 0.66 mark.
Support levels - 0.6729 (110-EMA), 0.6689 (200-DMA), 0.66 (trendline)
Resistance levels - 0.6813 (21-EMA), 0.6843 (5-DMA), 0.69
Recommendation: Stay short on break below 55-EMA support (0.6766), SL: 0.6845, TP: 0.6730/ 0.6690/ 0.66
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
