NZD/CHF has been trading in a long-term channel down since mid-June. The pair’s latest test of its bottom boundary occurred five weeks ago. The Kiwi has since been constrained in a channel up, while the most junior channel was formed within this pattern. It is expected that the New Zealand Dollar continues its current movement towards the senior channel located circa 0.7040 during the following two or three weeks. In the short term, the pair is also likely to appreciate, given that it faces a strong support formed by the 55-, 100– and 200-hour SMAs, the monthly R1 and the weekly PP near the 0.69 mark. As a result, the short-term channel should be breached to the upside. The nearest resistance is set by the weekly R1 at 0.70.
