NZDCHF - risk currency with downside potential

Besides the AUDUSD short that we are still watching, the NDZCHF is the second most interesting short candidate on our list. With the NZD weakness and the safe-haven aspect of the CHF, this pair made for good trading opportunities whenever China saw a new bear wave.

Right now, the NZD is testing its support level at 0.639. The Fib extension target points to the 161.8 which offers a 3.7% downside target. The Fib target is above the support area below and there is little support before that. The path of least resistance is definitely to the downside.

Similarly to the AUDUSD pair, we are waiting for the next drop in the Chinese market wich would boost risk aversion, drag down the Kiwi and lift the Franc.