NZD/CHF 1H Chart: Kiwi tests two channels
NZD/CHF is currently trading in three channels. The senior one was formed mid-September, while the other two emerged only in November. The Kiwi bounced off the senior channel circa 0.6720 last week and has since entered a slight consolidation period.
The current situation shows that the rate is testing the boundaries of two opposing patterns which are likewise reinforced by the 55– and 100-hour SMAs.
Thus, two scenarios are possible. In case the bearish momentum prevails, the Kiwi should edge lower but with limited momentum, as the senior pattern and circa 0.67. The pair might subsequently trade sideways prior to a period of appreciation.
Conversely, the medium pattern might be breached already in this session; however, sharp increase could be hindered by the weekly PP and the 200-hour SMA circa 0.6788. A surge is likely to follow.
The current situation shows that the rate is testing the boundaries of two opposing patterns which are likewise reinforced by the 55– and 100-hour SMAs.
Thus, two scenarios are possible. In case the bearish momentum prevails, the Kiwi should edge lower but with limited momentum, as the senior pattern and circa 0.67. The pair might subsequently trade sideways prior to a period of appreciation.
Conversely, the medium pattern might be breached already in this session; however, sharp increase could be hindered by the weekly PP and the 200-hour SMA circa 0.6788. A surge is likely to follow.
