Hello traders! Some of my previous analysis already suggested the weak New Zealand Dollar across the board. It seems like many pairs will move against the NZD and NZD/CHF should not be an exception.
If we look at the 8-hour chart, there is a clear triangle pattern. Price broke below the triangle back on May 13. Although strong correction followed reaching the 0.5940 high as well as the downtrend trendline and 200 Exponential Moving Average. During the past several days, price attempted to break above the EMA although failed to do so, suggesting the domination of the sellers.
It looks like 0.5930 is a strong supply zone as long as 8h close remains below the 0.5940. The downtrend or a strong pullback should be expected in the coming days. There are multiple support levels to watch although the key target is seen at 0.5782, which corresponds to 327.2% Fibonacci retracement level applied to the corrective wave up after price has topped out. At the same time this could be a long term downtrend continuation, but only if NZD/CHF will break and close below 0.5782 on the Daily chart.
Bias: Strongly bearish while below 0.5940
Potential Resistance Zone: 0.5900 – 0.5940
Potential Targets: 0.5818, 0.5807, 0.5896, 0.5882
Have a profitable trading!