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Weekly Technical Outlook: NZD/CHF; Market Forecasts for February 8th – February 12th

By:
Sylvester Stephen
Updated: Feb 8, 2016, 15:31 UTC

Resistance level   0.6703 Pivot Level 0.6626 Support Level 0.6502, 0.6461, and 0.6393 Technical Analysis Daily bias in NZD/CHF remains bearish with 0.6703

Weekly Technical Outlook: NZD/CHF; Market Forecasts for February 8th – February 12th
  • Resistance level   0.6703
  • Pivot Level 0.6626
  • Support Level 0.6502, 0.6461, and 0.6393

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Technical Analysis

Daily bias in NZD/CHF remains bearish with 0.6703 resistances intact. A deeper decline is expected for the pair as long as resistance is holding the area. The price action stays below resistances so far at this point, and such a decline is viewed as a correction. Thus, the pair remains bearish with a break of 0.6626 indicating near term bearish reversal taking place and turning the outlook with a downside bias price action signaling pin bars reversal bearish movement.

Rejection at resistance area closed below the break of trend line at the end of the week and stochastic oscillator is currently at 82.0 levels. The pair closed below the rejection of trend clearly indicating a trend reversal shifting the momentum.

Current development suggest that the medium term downside is expected for a further low and focus shall be at 0.6502. A break here should make lower lows with 0.6461 and later at 0.6393 levels. However, a break of resistance level at 0.6703 will dampen our bearish view on the pair and looks towards an upward bias. Outlook remains bearish for the week.

Economic

  • Electronic Card Retail Sales, Business NZ PMI
  • Business NZ PMI for the Kiwi’s
  • Unemployment Rate for the Swiss, Consumer Price Index
  • Consumer Price Index (YoY)

Area of Interest

  • Strong resistance at 0.6703 area and closed below resistance levels.
  • Bearish pin bar reversal strongly closing below the break of trend line.
  • Price action closed below trend line and oscillator below 82.0 levels indicating shift in momentum.
  • At Flip Area on Daily time frame resistance levels.

For more detailed analysis from the author, please visit NoaFX.

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