Bullish Opportunities
Today’s RBNZ rates decision was a short term blow for NZD, but looking ahead there are still bullish opportunities with the RBNZ highlighting that it remains focus on raising rates as soon as possible. With this in mind, many regional banks and other market players are forecasting a rate hike as soon as October. With the SNB, on the other hand, committed to maintaining an easing presence in order to stop excessive strengthening in CHF, there is plenty of divergence within the monetary policy outlook for the RBNZ and SNB, raising bullish opportunities in NZDCHF.
Technical Views
NZDCHF
The sell off in response to the RBNZ meeting saw the pair trading down to retest the current yearly lows. However, for now price is holding. The pair has been stuck in a bearish channel since Q1 though we have seen plenty of bullish divergence in both MACD and RSI into recent lows, leading to one breakout attempt so far. Bulls should keep an eye on the current double bottom in place and can look for a break above .6387 to target .6540 initially.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.