- NZD/CHF trades in a narrow range, finds major resistance at 0.7033 (nearly converged 50 and 200 DMAs.
- Spinning top formation seen on daily charts, strong support lies at 100-DMA at 0.70.
- The kiwi dented by poor data and inconclusive election results which culminated in a hung parliament.
- New Zealand trade balance for August came in at $-3.2B, below forecasts at $-2.91B.
- NZ business confidence stood at 0.0 pct in September vs 18.3 pct in previous survey, while own activity outlook fell to 29.6 pct vs 38.2 pct prior.
- Technical studies have turned bearish on intraday charts, we see scope for further downside.
- Break below 100-DMA finds next support at 20-DMA at 0.6965. Bearish invalidation above 200-DMA.
Support levels - 0.6992 (100-DMA), 0.6965 (20-DMA), 0.6911 (Mar 28 lows)
Resistance levels - 0.7033 (50-DMA), 0.7036 (200-DMA), 0.7053 (weekly 200-SMA), 0.7072 (5-DMA)
Recommendation: Good to go short on break below 100-DMA, SL: 0.7040, TP: 0.6965/ 0.9615
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -123.144 (Bearish), while Hourly CHF Spot Index was at -0.055815 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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