NZD/CHF Could Be The Next Shoe To Drop Behind NZD/JPY
|Whilst NZD/JPY appears to be leading the way lower, NZD/CHF looks to be carving out a similar path.
Bearish momentum has picked up on NZD/JPY since the 75.96 high (lower high) and, whilst prices have stalled around 73.83 support, but we suspect further losses could materialise following a minor pullback. Keep in mind that news is light today and AU and NZD have Anzac Day, so volumes will likely be thinner in today’s session. That said, with momentum pointing firmly lower on the daily, it could be worth seeking bearish setups on intraday timeframes after a period of consolidation. If prices can break beneath 73.66, the lows around 72.35 come into focus for bears.
Currently holding above the 0.6718 lows, we suspect NZD/CHF is on the brink of breaking key support and playing catch-up with NZD/JPY. Although far from perfect, there has a slight rounding off at the tops as bulls struggled to push it higher, so we’re essentially looking at some form of topping pattern above 0.6718. More interestingly though, is that the majority of days above key support have been bearish, to suggest the tide could be turning. A measured move from the obscure looking top projects an approximate target around 0.6500, although we could find interim support around 0.6676 and 0.6587.
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