NZDCHF Reversal Underway
The NZDCHF double bottom reversal recently highlighted has seen price breaking above the .6387 level, triggering the trade and has now hit the initial target at .6540. With NZD the best performer of the G10 over recent weeks and given the heavy skew in monetary policy expectations between the RBNZ and the SNB, there is room for the move to continue higher. This is further endorsed by the retail community holding a more than 80% short position. The focus for bulls now will be a break of the current highs, targeting .6722 next.
Key Data to Watch
Very little in the way of key data for either pair. With this in mind, the focus is likely to be on US data and the ECB meeting this week, which both hold the potential to propel the pair higher. Anyway USD weakness in response to softer data will support NZD over CHF while any upside in EUR as a result of a more hawkish than expected ECB meeting will create a drag on CHF.
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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.