NZD/CHF Rejecting the Support and Breaking the Resistance Suggesting a Continuation of the Bullish Trend

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Updated: 07 September 2020

Hello traders! There is an interesting price action going on with the NZD/CHF currency pair. On September 1 price broke above 200 Simple Moving Average and on September 2 it broke the downtrend trendline suggesting further growth potential.

After the breakout NZD/CHF corrected down and cleanly rejected the 38.2% Fibonacci retracement level at 0.6083. At the same time, the 200 EMA was rejected which could have been the strong confirmation of the bullish trend.

As long as the daily close remains above the 0.6083 support, the price will continue rising and could reach the 0.6200 psychological resistance level. This upside target is confirmed by 2 Fibs, 61.8%, and 88.6 as per the chart below. Therefore the growth potential should be at least 80 pips from the current price, but only if the support holds.

Bias: Strongly bullish while daily close remains above 0.6083

Potential Support Zone: 0.6100, 0.6120

Potential Targets: 0.6200

Have a profitable trading!