NZD/CHF is breaking lower in line with dominant momentum.
The kiwi remains the weakest currency this quarter whilst RBNZ continue to send dovish signals to markets. As the Swiss franc is the second strongest major this quarter due to haven demand, we see potential for NZD/CHF to trade lower from current levels.
We can see on the daily chart that NZD/CHF has been in a strong downtrend since peaking at 0.7121 in April, carving out a clear series of lower highs and lower lows. Since hitting lows of 0.6513 earlier this month, the cross has retraced and formed a bearish hammer to suggest a corrective swing high is in place.
Closer inspection of the daily swing high on the hourly candle chart shows that a small double top is in place. Today’s break beneath support at 0.6565 confirms the double top and indicates that short-term momentum has realigned with the daily bearish trend.
Place your stop near the hourly double top at 0.6603. Place your limit at 0.6470.
The kiwi remains the weakest currency this quarter whilst RBNZ continue to send dovish signals to markets. As the Swiss franc is the second strongest major this quarter due to haven demand, we see potential for NZD/CHF to trade lower from current levels.
We can see on the daily chart that NZD/CHF has been in a strong downtrend since peaking at 0.7121 in April, carving out a clear series of lower highs and lower lows. Since hitting lows of 0.6513 earlier this month, the cross has retraced and formed a bearish hammer to suggest a corrective swing high is in place.
Closer inspection of the daily swing high on the hourly candle chart shows that a small double top is in place. Today’s break beneath support at 0.6565 confirms the double top and indicates that short-term momentum has realigned with the daily bearish trend.
Place your stop near the hourly double top at 0.6603. Place your limit at 0.6470.
Comment:
Please see the hourly chart for the double top. Fairly clear so no need for a chart
Comment:
Closed at market breakeven.
Trade closed manually:
Closed at Breakeven - After initially heading lower after yesterday's entry, NZD/CHF has turned higher in today's trade.
With rates now showing a potential "piercing candle" and higher low on the daily chart, we're closing this trade for a small loss here.
With rates now showing a potential "piercing candle" and higher low on the daily chart, we're closing this trade for a small loss here.