NZD/CHF rate moved in a narrowing channel since the end of August 2015 – during Monday’s session, there was a dynamic appreciation that caused breakout above the formation. At this point, channel is still retested from the top. The zone coincides with 0.6310 resistance (now support) – low from early-August. Traders in this place should look for signals of demand.
Wider view, interval W1
In a broader perspective, we can see that price during August tested the long-term support (0.5730) for the third time. The first two tests of 2008 and 2011 provided increases to the resistance area 0.8010-0.8140. Although the current rate is far away from that zone, when we take aloot at long-term NZD/CHF consolidation and regular rebounds of the channel extremes – this direction should be taken into account.
