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FxWirePro: NZD/CHF rejected at highs, fails to hold retrace above 200-DMA, bias lower

  • NZD/CHF slumped lower on Wednesday's trade to close below major support at 200-DMA.
     
  • Kiwi dented on CPI data miss. NZ Q4 CPI +0.1 pct q/q (poll +0.4 pct); y/y CPI +1.6 pct ( poll +1.9 pct).
     
  • The pair's recovery attempts on the day remained capped below 20-DMA. Upside was rejected at highs.
     
  • Technical studies slightly bearish. RSI and Stochs are biased lower and we see -ve DMI dominance.
     
  • Cloud is immediate strong support. Break there raises scope for test of 61.8% Fib at 0.6855. 
     
  • On the flipside, retrace and close above 200-DMA invalidates bearish bias.

Support levels - 0.6913 (100-DMA), 0.6868 (cloud top), 0.6854 (61.8% Fib)

Resistance levels - 0.6945 (200-DMA), 0.6987 (20-DMA), 0.6992 (5-DMA)

Recommendation: Stay short on rallies around 0.6945, SL: 0.6990, TP: 0.6915/ 0.6870/ 0.6855

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