FxWirePro: NZD/CHF pauses downside at daily cloud, bias bearish, good to go short on break below

NZD/CHF chart on Trading View used for analysis

• NZD/CHF is trading 0.50% lower on the day at 0.6695 at the time of writing.
   
• Price action has broken below 200-DMA support raising scope for further downside.
   
• The pair has paused downside at daily cloud top and break below will see resumption of weakness.
   
• Technical indicators support downside in the pair. Stochs and RSI are sharply lower.
   
• We see -ve DMI dominance and MACD also supports downside.
   
• However, Stochs are at oversold and we could see some consolidation at current levels.
   
• Break below daily cloud will see test of 61.8% Fib at 0.6552. Retrace above 200-DMA will negate bearish bias.

Support levels - 0.67 (38.2% Fib), 0.6684 (cloud top), 0.66, 0.6552 (61.8% Fib)

Resistance levels - 0.6739 (200-DMA), 0.6781 (21-EMA), 0.68

Recommendation: Stay short on break below daily cloud, SL: 0.6740, TP: 0.6626/ 0.66/ 0.6552

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