Friday, August 23, 2019
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Technical Analysis – NZD/CHF the short-term suggest bullish bias

NZD/CHF’s 100-SMA and 50.0% Fibonacci become a double opponent obstacle.

NZD/CHF saw some positive divergence in the last several weeks on the RSI which helped it to bounce back from a three-month high tumble from 0.6913 to an eight-month low of 0.6423. Since yesterday the price is trading above the 38.2% Fibonacci retracement level of the down-leg from 0.6913 to 0.6423, of 0.6614 and is heading towards the 50.0% Fibo coupled with the 100-day simple moving average (SMA) at 0.6673.

The short-term SMAs of 21- and 40-days have crossed bullishly suggesting the continuation up. The MACD has started its acceleration in positive areas, while the RSI concurs near the overbought area. The ADX also coincides showing a strong trend.

For the upside, the price would need to initially push through the double barrier of the 100-SMA and 50.0% Fibo level near 0.6673. The next test would be the 61.8% Fibo coupled again with a resistance of 0.6730. If this scenario unfolds, the ceiling around 0.6810 – 0.6825 would come into play.

For moves back down, immediate support would be 0.6622, then the 38.2% Fibo of 0.6614, before a lower test of the 21- and 40-SMAs could be tackled around the 23.6% Fibo of 0.6542 and near the support of 0.6520. A definitive shift to the downside would need an eight-month low of 0.6423 to be surpassed before further historical lows unfold.

Briefly, the short-term suggest bullish bias, whereas awareness of a medium-term bearish outlook is necessary.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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