NZD/CHF is moving back down in the charts after breaking over a significant resistance.
Are the two prices prepared to resume their longer-term trend?
Or are we merely witnessing a pullback?
I don't know whether you've noticed, but back in September, the NZD/CHF pair crossed above a long-term trend line resistance.
However, the pair ran against resistance at 0.5500. In fact, it is trading below both the Pivot Point level and the SMAs on the daily chart.
Before the buyers come back, how low may NZD/CHF go?
Watch the psychological handle at 0.5300, which coincides with the S1 (0.5290) Pivot Point level and the location of the broken trend line.
The 0.5300 mark is also not distant from the 6.18% Fibonacci retracement line for Fibonacci traders.
If NZD/CHF recovers from the potential support region, it could climb back up to the prior highs of 0.5500 or the 0.5400 pivot point line.
However, if NZD/CHF keeps exhibiting bearish candlestick patterns and decisively trades back below the trend line, then you can set up trading strategies that can profit from a protracted NZD/CHF slump.
