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That being said, with the pair trading in the middle of a slight descending channel that it has carved out since late March, there is an opportunity to trade the pair back towards its Range Bottom, provided that the Reserve Bank of New Zealand holds a dovish tone after today’s rate decision.
NZD/CHF sold off from 0.7500 to 0.6380 in a matter of weeks. That was followed by a rally of almost 800 pips just as fast. By a comparison, during the last three weeks, the price range has been about 200 pips – a non-event.
we can see an uptrend and he beauty about it is that we are on its lower line so we can go all the way up with it until 0.709 for a nice 180pips as min target
The surprise move by the SNB to cut rates, inject liquidity and leave open the threat of FX intervention, left CHF at the bottom of the performance table. However, the initial CHF sell-off did fade as the SNB move does not alter the downside risks to the US economy,
we can see an uptrend and he beauty about it is that we are on its lower line so we can go all the way up with it until 0.709 for a nice 180pips as min target
Good luck
On the short term charts, the NZDCHF is already trading in a bearish condition, I’m already looking for short opportunities (as long as it trades below the short term resistance level around 0.6742). But if you are a more conservative trader, then wait for the market to break the short term support level:
I have already entered into a buy position with a target price that includes a 500 point profit, close to the significant resistance level of 0.7470. I'm prepared to strengthen the position in the event that the pair breaks through the strong resistance of 0.7220 – meeting point with the 200 day moving average line.
Price is currently at 0.6600, and is in the area between the BB-2 with W SD W SD BB-1.
if so will prices rising, the next observation points are at:
1.) BB W SD-1 0.6659
2.) MA Weekly 0.6805
even if the price is DECREASING onwards, the dots are on the next observation:
1.) BB W SD-2 0.6513
2.) BB W SD-3 0.6367
NZD/CHF could be getting ready for another move down. Of course, this is dependent on breaking the 0.6740 support, but if it happens, the price could easily test the major low of 0.6380.
I'm prepared to strengthen the position in the event that the pair breaks through the strong resistance of 0.7220 – meeting point with the 200 day moving average line.