- In my daily NZD/CHF analysis, it’s easy to see that we are at an overstretched condition to the downside, so it’ll be interesting to see how the Swiss franc behaves.
- The New Zealand dollar of course is a “risk on currency”, and a lot of people will be paying close attention to it as a result.
- With this being the case, I think you’ve got a situation where traders will continue to look for some type of directionality when it comes to risk appetite, and that will have a major influence on this pair.
Technical Analysis
The technical analysis on this pair is pretty dire, but it’s probably worth noting that the 0.53 level is an area that we have seen a lot of support in, so it’s probably not a huge surprise to see that we have bounced a bit from there. If we can continue to see signs of strength, this is a potential mover to the upside as it would be a massive recovery. A lot of this will come down to how other assets perform, because quite frankly if we continue to see a lot of concern, this is a pair that will continue to suffer. If we break down below the 0.53 level, then it’s likely that the market could go down to the 0.52 level rather quickly.
On the other hand, if we can recapture the 0.54 level, then I think this is a market that could really start to take off to the upside, perhaps offering the possibility of a move to the 50-Day EMA. Keep in mind, the kiwi dollar is not only considered to be a risky asset, but it is also highly sensitive to commodities and Asia overall. With that being the case, I think you’ve got a situation where traders will continue to be very cautious with putting money to work, but if they do decide to start investing and trading for positivity again, this could be one of those pairs that are easy to overlook but could be a big producer.
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