NZD/CHF 1H Chart: Kiwi tests channel
The Kiwi has been trading in a channel down against the Swiss Franc since mid-September. As apparent on the chart, the pair was stranded in a junior ascending channel during its last wave upwards. This has allowed to test the upper channel boundary.
Currently, the pair demonstrates two possible scenarios.
The more probable option is that the Kiwi would bounce off the given line and initiate a new wave down—a scenario likewise supported by converging technical indicators. However, in order to do so, the pair has to breach the 55-hour SMA and the monthly PP at 0.6990. The next level of significance is the weekly PP, the 100– and 200-hour SMAs and the 23.6% Fibo in the 0.6960/35 area.
Conversely, the Kiwi might decide to continue respecting the boundaries of the junior channel. The upside limit could be the weekly R1 or R2 at 0.7046 and 0.7104, respectively.
Currently, the pair demonstrates two possible scenarios.
The more probable option is that the Kiwi would bounce off the given line and initiate a new wave down—a scenario likewise supported by converging technical indicators. However, in order to do so, the pair has to breach the 55-hour SMA and the monthly PP at 0.6990. The next level of significance is the weekly PP, the 100– and 200-hour SMAs and the 23.6% Fibo in the 0.6960/35 area.
Conversely, the Kiwi might decide to continue respecting the boundaries of the junior channel. The upside limit could be the weekly R1 or R2 at 0.7046 and 0.7104, respectively.