NZDCHF: Will 0.5500 Support Hold ?

Thurs 20th April 2023 : Daily Forex Price Action

Today we’re looking at Trading Setups in:

• NZDCHF
• CHFJPY (Covered in Video)

Today we’re looking at Trading Setups in: NZDCHF & CHFJPY (Covered in Video)

NZD tops the day traders table as the weakest currency.

CHF is the only highlighted currency on the strong side of the tables.

NZDCHF could continue to trade lower.

However, the price has reached a major support low between 0.5525 and 0.5500.

The last time the price tested this level price rallied over 500 pips.

In this scenario it is best to wait to see how the price reacts. 

If we see price break down through the lows, then we could expect further downside to 0.5300.

However, if price finds support, we would need to wait for the price to test previous resistance.

This could be the lows at 0.5630, or the trend line resistance above. 

Technical Observations

• The CHF is S2 and NZD is W1 on the day traders table.
• Price is at a key level of support at 0.5500.
• Price rallied over 500 pips from this level most recently.
• If the price hold here we could see price reverse back to the lows of 0.5630 or trend line resistance.
• Traders looking to get short should wait for price to move beyond the lows before considering a trade.
• If price does hold below the lows sellers could target the March 2020 lows of 0.5300.