FxWirePro: NZD/CHF resumes downside after breach at channel base, good to short rallies

• NZD/CHF has resumed downside after brief consolidation last week.
   
• The pair is extending breach at channel base and remains capped below weekly 100-SMA.
   
• Price action has slipped below weekly cloud and major moving averages.
   
• Technical studies support downside. RSI and Stochs are sharply lower and MACD supports downside.
   
• Immediate support at 0.6726 (38.2% Fib retrace of 0.57587 to 0.73242 rally).
   
• On the flipside, weekly 100-SMA at 0.6919 is major resistance, decisive close above could see bearish invalidation.

Support levels - 0.68, 0.6783 (88.6% Fib retrace of 0.67182 to 0.72909 rally), 0.6726 (38.2% Fib retrace of 0.57587 to 0.73242 rally), 0.6718 (2017 low)

Resistance levels - 0.6828 (5-DMA), 0.6840 (78.6% Fib retrace of 0.67182 to 0.72909 rally), 0.6903 (20-DMA)

Recommendation: Good to go short on rallies around 0.6830/40, SL: 0.6910, TP: 0.68/ 0.6725/ 0.67.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -126.006 (Bearish), while Hourly CHF Spot Index was at 105.216 (Bullish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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