NZD/CHF broke below its ascending triangle support!
Can a pullback to this area still attract more sellers to sustain the potential selloff?
Check out these inflection points on the 4-hour time frame.
NZD/CHF: 4-hour
NZD/CHF 4-hour Forex Chart Faster with TradingView
Risk-off vibes stemming from geopolitical anxiety, caution ahead of the FOMC meeting minutes, and downbeat data points from China weighed on the Kiwi earlier this week.
However, the higher-yielding currency seems to be finding support from renewed diplomatic hopes that the US and Iran can still reach a peace agreement to finally end the war.
Can NZD/CHF keep climbing, or will nearby resistance levels keep gains in check?
NZD/CHF is currently pulling up to the 50% Fibonacci retracement level that lines up with the 100 SMA dynamic inflection point after breaking below its triangle bottom.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
A larger pullback could reach the 61.8% level or even R1 (.4640), closer to the broken triangle support, which could now hold as resistance. Should sellers return soon, the pair could set its sights on bearish targets at the pivot point (.4610) then the swing low around .4588.
Sustained downside pressure could drag NZD/CHF to fresh lows at S1 (.4570) then S2 (.4550), which lines up with a minor psychological level.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
This NZD/CHF setup is partly a story about the Swiss franc, and if you’re not familiar with what drives it, our lesson on Switzerland has you covered. Premium members can read our lesson:
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