- NZD/CHF is extending breakout at 200-DMA and daily Ichi cloud last week, bias higher.
- The pair has broken above 200-DMA at 0.6944 after breakout at major trendline resistance.
- We see price action has broken out of daily cloud which is now strong support at 0.6927.
- Technical studies support upside in the pair, RSI strong above 60 levels and rising.
- Momentum studies are bullish. ADX is above 25 levels and rising with +ve DMI dominance.
- 200W SMA at 0.7015 is major resistance, break above will propel the pair higher.
Support levels - 0.6954 (5-DMA), 0.6944 (200-DMA), 0.6927 (cloud top)
Resistance levels - 0.7015 (200W SMA), 0.7067 (61.8% Fib retrace of 0.7290 to 0.6706 fall), 0.7117 (July 13 and Aug 15 high)
Recommendation: Good to go long on break above 0.7015, SL: 0.6950, TP: 0.7065/ 0.7115/ 0.7140.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
