NZDCHF: Short opportunity on two possible scenarios.

The pair is trading on a major 1W Channel Down (RSI = 35.456, MACD = -0.012, Highs/Lows = -0.0100) that is approaching the Lower Low trend line following a rejection on the 1D MA50 on the median of the Channel. This has 0.60800 as the immediate target.

There are two scenarios that arise both bearish on the long term. Either a break below the major Channel Down into a new (more aggressive) minor Channel Down towards the 1M Support (0.57400) or a rebound seeking a new Lower High and rejection on the 1D MA200, before a strong decline eventually to the 1M Support (0.57400).

Why the 1M Support is a target for NZDCHF? Because since August 2011 it has been tested 3 times and every time the price broke 0.62000 it always tested (and rebounded on) that Support level.






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