- NZD/CHF breaks above 20-DMA at 0.6785, further upside only on close above.
- Better-than-expected Chinese services PMI data and comments by the RBNZ Governor Spencer keep support for the kiwi.
- Spencer said that Reserve Bank of New Zealand has become more flexible on inflation targeting.
- Momentum indicators on daily charts are bullish, RSI is biased higher, but remains below 50 levels.
- Decisive close above 20-DMA can see test of 0.6844 (23.6% Fib) ahead 50-DMA at 0.6865.
- Rejection at 20-DMA raises scope for test of 5-DMA at 0.6755 and then trendline at 0.67 levels.
Recommendation: Watch out for close above 20-DMA to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 138.634 (Bullish), while Hourly CHF Spot Index was at -95.9257 (Bearish) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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