FX.co ★ Technical analysis of NZD/CHF for March 18, 2016

After finding the bottom near the 0.6500 psychological level and forming a bullish divergence on the RSI oscillator, NZD/CHF moved higher and broke the descending channel. At the same time, the pair broke above the very strong resistance (0.6600) that has been previously tested many times. At the moment, the price corrected down and is once again near the broken resistance (currently S1 support).

The Fibonacci applied to the first corrective wave after the resistance breakout shows potential upside targets. The 261.8% retracement level (R3) corresponds to the Fibonacci channel 261.8% retracement which could be an ideal upside target.

Consider buying NZD/CHF while the price is near S1 (0.6600), targeting either R2 (0.6690) or R3 (0.6750) being the final target for a potential upcoming wave up. A stop loss should be well below the S1 support.

Support: 0.6600

Resistance: 0.6655, 0.6690, 0.6750