FxWirePro: NZD/CHF on track to test 200-DMA at 0.6744, stay short on rallies

NZD/CHF chart on Trading View used for analysis

• NZD/CHF recovery stalled at stiff resistance at 20-DMA, upside only on break above.
   
• The pair has ignored Doji formation on Monday's trade and has resumed weakness.
   
• Price was down 0.24% on the day at the time of writing, intraday bias bearish.
   
• Technical studies for the pair support bearishness for the pair. Stochs and RSI are biased lower.
   
• Price action has slipped below 23.6% Fib and we see scope for test of 200-DMA support.
   
• Any further downside only on decisive break below 200-DMA. On the flipside, close above 20-DMA could see upside resumption.
   
• On the data front, we do not see anything of much significance from New Zealand this week.
   
• Business NZ will be releasing their data on manufacturing this Friday. This is expected to have a medium impact on the kiwi.

Support levels - 0.6744 (200-DMA), 0.67 (38.2% Fib)

Resistance levels - 0.6822 (20-DMA), 0.6939 (Dec 4 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-holds-20-DMA-support-break-below-to-see-further-weakness-1469443) has hit TP1. 

Recommendation: Stay short for targets. New short can be initiated on upticks, SL: 0.6850, TP: 0.6745/ 0.67.

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