After breaking above a key resistance, NZD/CHF is pulling back down in the charts.
Is the pair ready to go back to its longer-term trend?
Or are we just looking at a pullback?
NZD/CHF Daily Forex Chart by TV
I don’t know if you’ve noticed, but NZD/CHF broke above a long-term trend line resistance back in September.
The pair encountered resistance at .5500, however. In fact, it’s also trading below the SMAs and the daily chart’s Pivot Point level!
How low can NZD/CHF go before the buyers return?
Keep an eye on the .5300 psychological handle, which lines up with the S1 (.5290) Pivot Point level as well as the broken trend line area.
For Fibonacci traders, the .5300 mark is also not far from the 6.18% Fibonacci retracement line.
A bounce from the potential support area opens NZD/CHF to a possible move back up to the .5400 Pivot Point line if not the .5500 previous highs.
But if NZD/CHF continues to show us bearish candlesticks and firmly trades back below the trend line again, then y’all can put up trading plans that can take advantage of an extended NZD/CHF downtrend.
