- NZD/CHF has shown a break at minor trendline support at 0.6455, bias bearish.
- The pair is trading 0.27% lower on the day and we see scope for test of 61.8% Fib at 0.6356.
- Price action is testing new multi-month lows every day, as the Kiwi remains offered across the board in response to dismal NZ business confidence reading.
- Further, escalating US-China trade tensions and Italy's fiscal concerns to keep sentiment depressed, weighing further on the kiwi dollar.
- The pair trades with a major bearish bias on weekly charts, bears target 61.8% Fib at 0.6356.
- Major trend is bearish, minor pullbacks can be used to stay short in the pair.
- 21-EMA is stiff resistance at 0.6572. Break above could see extension of upside till 50-DMA at 0.6676.
Support levels - 0.64, 0.6356 (61.8% Fib), 0.63
Resistance levels - 0.65 (5-DMA), 0.6541 (50% Fib) 0.6572 (21-EMA)
Recommendation: Stay short on upticks. SL: 0.6590, TP: 0.64/ 0.6355
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-hits-29-month-lows-kiwi-offered-across-the-board-in-response-to-dismal-ANZ-business-confidence-reading-1421910) is progressing well.
Recommendation: Bias lower, stay short for targets.
