NZDCHF has seen a dramatic rise in fortunes over the past year, as prices remain firmly above their pre-pandemic status.
We now see the first test of the specified level, as levels at the back end of 2019 come into play. The long-term bullish trend line will act as a support, should prices wane under the recent bearish divergence.
To the upside, the trend could continue if the mid-0.65c region can be broken. However, bias will soon shift towards the downside if the long-term support is pierced.
A look at an intra-day perspective shows a recent flurry of activity on the upside has led to exhaustion.
A hidden bullish divergence has put a halt to prices trending any higher. Bears are now targeting the downside bias, with the 23.6% of the 0.6502/0.6320 Fibonacci leg being the first test.
As the candles make their way to 38.2%. Should this also be broken, then the 50% is likely to lead prices lower, dropping back down to monthly lows below 0.64c.
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