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Even though the NZD/CHF is in a directionless consolidation, we can see that the price is gravitating heavily to the downside. It has repeatedly found support at the 0.6740, yet after every bounce it tends to return to this area, creating a pronounced bearish bias.
if the pair closes beneath the last support level of 0.6945 this will be an indication of a negative momentum and a fast exit from a buy position.
will waiting for retracement around fibo 38.2% and 50% (as the re-test confirmation of support break).
fibo 38.2% = 0.6625 area
fibo 50% = 0.67 area
cheers
NZD/CHF is in a directionless consolidation, we can see that the price is gravitating heavily to the downside. It has repeatedly found support at the 0.6740, yet after every bounce it tends to return to this area, creating a pronounced bearish bias.
t is important to stress that a clean breach, in the shape of a daily close under it, of the strong support level at 0.6890, will signal for a continuation of the pair's downward movement, towards the next low support level located around 0.6280 Swiss francs for one New Zealand dollar.
the strong support level at 0.6890, will signal for a continuation of the pair's downward movement, towards the next low support level located around 0.6280 Swiss francs for one New Zealand dollar.
NZD/CHF pair identifies a descending wedge formation as recent risk aversion flows continue to see traders moving from the higher-yielding, growth-linked currencies, into the safety of the swissie
the pair trading in the middle of a slight descending channel that it has carved out since late March, there is an opportunity to trade the pair back towards its Range Bottom, provided that the Reserve Bank of New Zealand holds a dovish tone after today’s rate decision.
NZD/CHF sold off from 0.7500 to 0.6380 in a matter of weeks. That was followed by a rally of almost 800 pips just as fast. By a comparison, during the last three weeks, the price range has been about 200 pips – a non-event.
Both currencies have appreciated for varying reasons, however: the Kiwi offers a safer asset than the Australian Dollar, which has a higher overnight interest rate, and thus serves as a modest exposure to risk for market participants seeking such; on the other hand, the Franc has appreciated sharply across the other majors as investors have sought safe haven amid the crumbling of the world’s two economic pillars,