NZD/CHF is bouncing from a major psychological level, setting up a run toward a key resistance zone.
Will NZD/CHF extend a months-long downtrend if it hits the area of interest?
We’re taking a closer look at the 4-hour time frame!
NZD/CHF 4-hour Forex Chart by TradingView
The New Zealand dollar is off to a solid start this October, boosted by less-gloomy Chinese data and hawkish signals out of Australia.
The Swiss franc, on the other hand, has barely managed to ride the dollar’s weakness. Worries over U.S. tariffs and the ongoing Russia-Ukraine conflict may be keeping demand for European currencies in check.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Swiss franc and the New Zealand dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
NZD/CHF turned higher from the .4600 handle and is now eyeing the .4680 to .4700 zone, where the 100 and 200 SMAs sit.
Note that this area also matches up with the 50% and 61.8% Fibonacci retracement of September’s downswing, along with the trend line resistance that has capped the pair’s downtrend since mid-August.
A rejection at the resistance zone could send the pair back into its downtrend, opening the door to fresh 2025 lows. Sellers may also step in earlier, around .4660, where the 38.2% Fib lines up with prior inflection points.
But if NZD/CHF pushes past .4700 with momentum, that would signal an upside breakout and possibly a run toward the .4760 previous resistance.
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.
Disclaimer:
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.
