- NZD/CHF is consolidating break below major moving averages, bias bearish.
- Kiwi remains on the back foot after last week's dismal New Zealand Q4 CPI reading.
- Last week the pair breached support at 100 and 200 day MAs raising scope for further downside.
- Technical indicators support downside, we do not see major signs of reversal.
- Currently, price action is holding support at daily Ichimoku cloud. Break below will accentuate weakness.
- Next major support lies at 0.6785 (rising trendline) ahead of 0.6718 (May 22 low).
- While on the upside, major resistance is seen at 0.6919 (nearly converged 100 & 5 DMAs). Decisive break above 100-DMA invalidates bearish bias.
Support levels - 0.6854 (61.8% Fib retrace of 0.6706 to 0.7094 rally), 0.6785 (rising trendline), 0.6718 (May 22 low)
Resistance levels - 0.6919 (nearly converged 100 & 5 DMAs), 0.6943 (200-DMA), 0.6980 (20-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-rejected-at-highs-fails-to-hold-retrace-above-200-DMA-bias-lower-1115588) has hit all targets.
Recommendation: Watch out for break below daily cloud for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -57.3186 (Neutral), while Hourly CHF Spot Index was at 103.645 (Bullish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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