I see a textbook break and retest condition forming on the daily timeframe of NZD/CHF!
Will this area of interest remain a ceiling this time?
Take a look at the potential long-term support-turned-resistance area I’m watching:
Daily currency pair NZD/CHF Chart by TradingView
Did you miss those recent NZD/CHF bearish crashes and sell-offs?
The pair may be preparing for another major bearish wave, as it rises to retest the previous support area around the psychological levels of .5200-.5300.
The Fibonacci retracement tool also shows that this area of interest is located near the 50% level while the pivot point (.5310) is closer to the 61.8% Fibonacci level.
Can this NZD pair resume its slide soon?
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on the NZD and CHF yet, it’s time to take a look at the economic calendar and stay up to date with the daily fundamental news!
If any of the Fibonacci levels manage to keep gains in check, NZD/CHF could refocus on the swing low near S2 (.4950) or at least the area of interest at S1 (.5090) in the near term.
Recall that the Reserve Bank of New Zealand surprised market players by cutting interest rates last week, citing slowing inflation and a weaker growth outlook as reasons for easing monetary policy. RBNZ Governor Orr also said in subsequent speeches that he was more confident that inflation would return to its target range of 1% to 3%, raising the possibility of further rate cuts in the future.
But there are few major reports out of Switzerland this week, making the franc a potential safe-haven currency if risk-free flows rebound.
Just be sure to look for any major swings in market sentiment. This week’s collection of top-notch motivators!