FX.co ★ Technical analysis of NZD/CHF for August 10, 2015

After a heavy downtrend, NZD/CHF rejected the 0.63 area multiple times where finally it found the support. The pair started to produce higher highs and higher lows, thus pointing to a potential strength.

The price broke above the 200 Moving Average, came back to re-test it and was rejected. Currently, strong support is formed near the 0.64 area that also was rejected last week and could be an excellent opportunity to go long.

Consider buying NZD/CHF this week while it is trading between the current level (0.6450) and S1 support (0.6407) targeting 161.8% Fibs area (R2 - 0.66) applied to the 29.07 high and the 31.07 low. The stop loss should be set below the physiological support 0.64 because only daily closure below it could bring the control back to bears.

Support: 0.6407

Resistance: 0.6480, 0.6600