NZD/CHF: earning on volatility
NZD/CHF fell this week as the Swiss franc appreciated versus other currencies. However, the positive market sentiment related to the US-China trade deal helped the pair to find support in the 0.6355 area (50% Fibonacci retracement of the August-December advance; 100-day MA). At the moment of writing, the price has approached Wednesday’s high around 0.6400.
On the H4, we can see that NZD/CHF has met resistance. It may slide to the minimum seen on this timeframe and the H1 at 0.6387, where buyers will once again become interested. The turn upwards from this support and the following break above 0.6400 will lead the pair to 0.6420. The next resistance levels lie at 0.6420 (50-day MA) and 0.6435 (50-period MA on H4).
On the downside, a return below 0.6380 will open the way down for a retest of 0.6355.
Trade idea
BUY 0.6390; TP1 0.6420; TP2 0.6435; SL 0.6375
