After a heavy downtrend, NZD/CHF rejected the 0.63 area multiple
times where finally it found the support. The pair started to produce higher highs
and higher lows, thus pointing to a potential strength.
The price broke above the 200 Moving Average, came back to
re-test it and was rejected. Currently, strong support is formed near the 0.64 area that also was rejected last week and could be an excellent
opportunity to go long.
Consider buying NZD/CHF this week while it is trading between
the current level (0.6450) and S1 support (0.6407) targeting 161.8% Fibs area (R2
– 0.66) applied to the 29.07 high and the 31.07 low. The stop loss should be set below
the physiological support 0.64 because only daily closure below it could bring the control back to bears.
Resistance: 0.6480, 0.6600
The material has been provided by InstaForex Company – www.instaforex.com