Chart: NZD/CHF long-term support turned into resistance?

I see a manual break and retest situation forming in the NZD/CHF daily time frame!

Will he maintain this area of ​​interest as a ceiling this time around?

Take a look at this potential long-term resistance-turned-support area I’m watching:

Forex NZD/CHF Daily Chart from TradingView

Missed the NZD/CHF breakdown and sell-off recently?

The pair could be preparing for another major bearish wave as it pulls up for a retest of the former support area around the psychological .5200-.5300 levels.

The Fibonacci retracement tool even shows that this area of ​​interest is around the 50% level, while the pivot point (.5310) is closer to the 61.8% Fib.

Can this Kiwi pair resume their slide soon?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on the NZD and Swiss Franc yet, then it’s time to check the economic calendar and stay up to date with the daily fundamentals!

If either Fibs are able to hold gains in check, NZD/CHF could set its sights back on the swing low near S2 (.4950) or at least up to the interest zone at S1 (.5090) in the near term . .

We recall that the Reserve Bank of New Zealand (RBNZ) surprised market players with an interest rate cut last week, citing lower inflation and slower growth prospects as reasons for easing. RBNZ chief Orr also noted in his later speeches that he was more confident that inflation was back in their target range of 1-3%, increasing the chances of more rate cuts on the downside.

However, there is not much in the way of major reports from Switzerland this week, leaving the franc as a potential counter currency or safe haven option should risk-off flows increase.

Just be sure to keep an eye out for any big changes in market sentiment from this week’s top catalyst set!