Hello traders! Not surprisingly, Swiss Frank has become the choice for investors during these volatile and uncertain times. Most currencies continue to lose against CHF while hitting all-time lows.
NZD/CHF is not an exception, clearly, there is an extremely strong downtrend which has started on February 17, 2019. Since then NZD lost 11.3% to the CHF. Still, trend remains heavily bearish and recently pair rejected the previous level of support at 0.5790. At the same time, it rejected the downtrend trendline cleanly and the price remains below the 200 Exponential Moving Average.
On the 30m chart, NZD/CHF also rejected the 200 EMA as well as 38.2% Fibonacci resistance level at 0.5608. This could mean that the downtrend will continue, although first, it must break below the 61.8% Fibonacci support at 0.5494. For now, the price could is expected to produce a small wave down, although we are yet to see whether the long term downtrend could have ended or perhaps we will see a trend reversal. Price action near 0.5500 psychological support, should provide more clues on further price development. At the same time. If NZD/CHF will break and close above the 200 EMA on the 30m chart, it could trigger a stronger corrective move to the upside, towards the 0.5800 resistance area.
Bias: Strongly bearish while below 0.5800
Potential Resistance Zone: 0.5600 – 0.5660
Potential Targets: 0.5495
Have a profitable trading!