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FxWirePro: NZD/CHF breaks cloud support, bias bearish, good to short rallies

  • NZD/CHF has shown a decisive break below daily cloud, bias bearish.
     
  • Kiwi remains on the back foot after last week's dismal New Zealand Q4 CPI reading.
     
  • Last week the pair breached support at 100 and 200 day MAs raising scope for further downside.
     
  • Technical indicators support downside, RSI and Stochs highly bearish. Momentum studies bearish.
     
  • MACD supports downtrend, we see -ve DMI dominance and ADX supports downside.
     
  • Next major support lies at 0.6785 (rising trendline) ahead of 0.6718 (May 22 low).
     
  • While on the upside, immediate resistance is seen at 0.6878 (5 DMA). Decisive break above 100-DMA invalidates bearish bias.

Support levels - 0.68, 0.6785 (rising trendline), 0.6718 (May 22 low)

Resistance levels - 0.6854 (61.8% Fib retrace of 0.6706 to 0.7094 rally), 0.6878 (5 DMA), 0.6912 (100-DMA)

Recommendation: Good to go short on rallies around 0.6855/65, SL: 0.6920, TP: 0.68/ 0.6785/ 0.6720

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