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NZDCHF – Bullish Breakout Sets Stage for Reversal

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NZDCHF has broken decisively out of a long-term descending channel, signaling a potential trend reversal. Price action confirmed multiple bullish flags within the falling structure, followed by a clean breakout and higher low retest, supporting a bullish continuation bias.

Currently, the pair is stabilizing just above prior resistance turned support around 0.4760–0.4780, forming a potential launchpad for the next leg higher.

Upside Targets:

TP1: 0.48336

TP2: 0.48844

TP3: 0.49319

Invalidation Zone:
A drop below 0.4720 would invalidate the breakout structure and expose the downside.

Fundamental Drivers:

🇳🇿 NZD Strength: RBNZ remains relatively hawkish compared to other central banks, and the Kiwi may gain from improving risk sentiment and easing global recession fears.

🇨🇭 CHF Weakness: Swiss Franc is under mild pressure as safe-haven flows weaken amid improving tone on US-China-EU trade headlines and fading ECB rate cut bets.

🗓️ Macro Flow: Upcoming risk events (Fed comments, trade updates, and NZ economic prints) could inject momentum into the pair, especially if risk appetite improves.

Bias: ✅ Bullish (Buy)
Confidence: ★★★★☆
Watch for: Clean hold above 0.4770 zone + bullish momentum continuation.

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