- Stop loss 0.6517
- Entry level 0.6355
- First target at 0.6257
- Next targets to test at 0.6197, 0.6173
A deeper decline for NZD/CHF is expected strongly as long as 0.6500 resistances hold. At this point, such decline is viewed as a correction to the market for NZD/CHF pair. Thus, we’d expect strong resistance around long term at 0.6500 to contain downside. Meanwhile above 0.6517 will turn bias back to the upside. In the bigger picture, current development suggests that a medium term downside is already taken place and a deeper correction could be seen possibly to 0.6257.
There is clear indication of trend reversal with two bar rejection which closed below the resistance and a broken trend line suggesting a shift in momentum. Focus will be on the structure on the current fall from current levels. At this point, we’d expect strong resistance at current levels break of 0.6355 confirmed bearish moves on pair we shall wait for pull back to area. The fall from these levels should test 0.6257 and would extend to 0.6197 and later to 0.6173 minor support areas. Meanwhile, above 0.6517 should extend the upward bias which shall dampen our short term view. Outlook remains bearish for intraday bias.
- RBNZ Inflation Expectations, Trade Balance with Imports and Exports
- UBS Consumption Indicator for the Swiss
- Industrial Production
- Gross Domestic Product
Area of Interest
- Strong resistance at 0.6500 areas decline from current levels.
- Bearish pattern confirmed with back to back two bar reversal at resistance levels.
- Pair broke the trend line and closed below the trend line retesting the area.
- Key area to target to the downside bias shall be at 0.6197 Levels.
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