- NZD/CHF is trading 0.47% higher on the day. The pair is extending upside after brief consolidation in the previous session.
- Price action has broken out of 'Symmetric Triangle' pattern and now finds stiff resistance at 200-DMA at 0.6941.
- The pair is struggling to extend gains above 200-DMA and we see scope for further upside only on breakout above.
- The pair is holding support at 50-DMA at 0.6895, we see weakness only on break below.
- Technical indicators support upside. RSI and Stochs are biased higher and we see +ve DMI dominance with ADX support.
- Breakout at 200-DMA at 0.6941 will accentuate gains. Scope then for test of 78.6% Fib at 0.7017.
- On the flipside, breach below 50-DMA could see minor weakness, while violation at 20-DMA invalidate bullish bias.
Support levels - 0.6895 (50-DMA), 0.6851 (20-DMA), 0.68
Resistance levels - 0.6941 (200-DMA), 0.6957 (61.8% Fib), 0.70, 0.7017 (78.6% Fib)
Recommendation: Good to go long on break above 200-DMA, SL: 0.6890, TP: 0.6955/ 0.70/ 0.7020
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