NZD/CHF 1H Chart: Breakout alerts
Updated
After reaching the lower boundary of a downtrend channel on July 3, the New Zealand Dollar changed its market sentiment against the Swiss Franc and started to retrace to the upside.
During this period of upward movement, the exchange rate breached some major significant resistance level. Namely, the 55-, 100-, and 200-hour SMAs. Also, the rate dashed through the weekly and the monthly PPs.
Given that a breakout had occurred through the upper boundary of a descending channel, the NZD/CHF currency exchange rate could be set for continuous movement to the upside.
During this period of upward movement, the exchange rate breached some major significant resistance level. Namely, the 55-, 100-, and 200-hour SMAs. Also, the rate dashed through the weekly and the monthly PPs.
Given that a breakout had occurred through the upper boundary of a descending channel, the NZD/CHF currency exchange rate could be set for continuous movement to the upside.
Comment
The NZD/CHF exchange rate has been consolidating in the 0.67/0.68 range since the beginning of July. This movement sideways is stranded in a rather flat channel down. The rate bounced off its bottom boundary on Friday.
Assuming that this pattern is to hold intact for a couple of sessions more, the Kiwi should gain momentum and aim for its upper channel line located near 0.68. The 100– and 200-period SMAs (4H) are strengthening this resistance cluster. Thus, if a breakout north occurs, it is likely that the following target in the short term is the monthly R1 and the senior channel at 0.6830.
In case the monthly PP at 0.6740 is not surpassed, traders might see the rate approaching the 0.66 level.
Comment
The New Zealand Dollar has depreciated 2.92% against the Swiss Franc since August 8. At the time, the pair pullback from the monthly pivot point at 0.6741 and began a new movement down in a descending channel. During the short period of decline, the rate breached some significant support level. Namely, a support cluster formed by the combination of the weekly and the monthly PPs near the 0.6670 mark.
Given that technical indicators remain bearish on both the smaller and the larger time frames, it is likely that the Kiwi edged lower during the following trading sessions for potential near the weekly S1 at 0.6488.
Comment
The bearish momentum which began mid-April has guided the New Zealand Dollar lower against the Swiss Franc. This movement marks a 7.60% decrease in price during this period.
The 100 and 200-hour SMAs has pushed the NZD/CHF exchange rate further south. However, it seems that the trend of the currency pair might be changing, as the 55-hour simple moving average has fallen below the price action.
Technical indicators formed by the MACD, Alligator and SAR flash bearish signals on the weekly time frame, thus indicating that some downside potential is still possible in regards to this pair.
Comment
The NZD/CHF currency pair has been moving in a descending channel since late July. The exchange rate pullback from the upper boundary of a junior descending channel on July 31 and followed by a period of decline.
The New Zealand Dollar tested a resistance cluster formed by the 50-hour simple moving average and the combination of the weekly and the monthly PPs at 0.6581 on August 28 and made a U-turn south.
When looking at the currency exchange rate settings, the pair is likely to continue its southern journey during the following trading session for a potential target at the lower boundary of the descending channel.
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