Trade of the Day: NZD/CHF

By: Dima Chernovolov

NZD/CHF recently broke the key support level 0.5636, which was recently identified by Autochartist. Autochartist rates the quality of this support level at the 3-bar level – which is the result of three previous reversals from this price level. NZD/CHF is expected to continue to fall toward the forecast price 0.5636.

As can be seen from the daily NZD/CHF chart below – the pair earlier reversed down with the daily Shooting Star from the resistance area located between the key resistance level 0.6300 (former strong support from the start of February), upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward correction from February. The proximity of this resistance area and the overbought daily Stochastic add to the probability NZD/CHF will continue to fall toward the forecast price 0.5636.