FxWirePro: NZD/CHF consolidates break below 200-DMA, hovers around 61.8% Fib at 0.6864, bias lower

• NZD/CHF consolidates break below 200-DMA, trades largely unchanged on the day.
   
• The pair hovers around 61.8% Fibo support at 0.6864, break below will see further weakness.
   
• NZD on the defensive on dampening  data for the New Zealand economy.
   
• Markets are likely pushing out expectations of any rate hikes from RBNZ into 2019.
   
• Momentum studies bearish, RSI below 50 and biased south. We see -ve DMI dominance and ADX rising in support.
   
• Break below 200-DMA has raised scope for further weakness. Scope for test of 0.6780 (major trendline support).
   
• On the flipside, retrace and close above 200-DMA at 0.6919 negates bearish bias.

Support levels - 0.6865 (61.8% Fib), 0.68, 0.6795 (78.6% Fib), 0.6780 (trendline)

Resistance levels - 0.6919 (200-DMA), 0.6927 (100-DMA), 0.6966 (21-EMA), 0.70

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CHF-Trade-Idea-1308659) has hit all targets.

Recommendation: Good to go short on break below 61.8% Fib, SL: 0.6920, TP: 0.68/ 0.6755/ 0.6740.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.