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
The material has been provided by InstaForex Company – www.instaforex.com
The post Technical analysis of NZD/CHF for March 18, 2016 appeared first on forex-analytics.press.