Technical Analysis – NZDCHF undecided, finds support at 23.6% Fibonacci and 21-SMA

Technical Analysis – NZDCHF undecided, finds support at 23.6% Fibonacci and 21-SMA

Technical Analysis – NZDCHF undecided, finds support at 23.6% Fibonacci and 21-SMA

Anthony Charalambous, XM Investment Research Desk

NZDCHF uncertain of direction has found support at 0.6280, this being the 21-day simple moving average (SMA) and the 23.6% Fibonacci retracement level of the down leg from 0.6670 to 0.6161. The restricting 42-day SMA pushed the price down after it rallied from a fourty-seven-month low of 0.6161 to the 0.6400 handle.

The 21-day SMA and the MACD suggest that the short-term positive momentum has dried up. The MACD – although above its red trigger line – is in the negative zone, and has started to flatten slightly underneath the zero line. The RSI is marginally beneath the 50-level starting to turn down, concurring with the bigger bearish picture from the 42-, 100- and 200-day SMAs.

If the bears dominate and penetrate below the 21-day SMA and nearby support of 0.6269, the price could fall to test the 0.6200 obstacle. If the sellers conquer the psychological number, the 0.6180 support would need to be surpassed for all eyes to turn to the multi-year low of 0.6161, and for traders to consider an outstretch to the 0.6100 barrier.

In the positive scenario, the bulls could face interference at the 42-day SMA, currently at 0.6340, ahead of the 38.2% Fibo of 0.6355. The next resistance comes from the 0.6400 swing high before the 50.0% Fibo at 0.6415. If the buying interest keeps up, the pair could ascend to the 61.8% Fibo of 0.6475 where the 100-day SMA also resides.

Summarizing, the short-term outlook sees the price restricted between the converging 21- and 42-day SMAs.


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