Trend continuation. I believe the bullish pullback is over and the long term downtrend should resume shortly. We are currently sitting at the golden Fibonacci ratio and the price is located towards the top of the pullback channel. We can see price testing the top of the channel more than 4 times indicating the buyers are getting exhausted and sellers are very likely to take over.
The fundamentals are also aligned with our technical view of this pair:
The most recent economic release with the greatest impact for NZD was the NZ Quartely CPI, which took place on January 24, 2018 at 9:45pm GMT. The Deviation for the NZ Quartely CPI is 0.3% and the Forecast at the time was 0.4%. The actual figure came in at 0.1%, which was a negative surprise for NZD
The franc also trades as a more stable alternative to the dollar, euro or British pound in times of turbulence and uncertainty. While there are really not enough francs in circulation to use it as an alternative to these currencies, traders and speculators nevertheless seem to prefer the franc when conditions get dicey in other economies. With all the uncertainty with the euro and pound recently with the pound and euro I am expecting volume to increase in the swiss franc which might push the currency higher.
The fundamentals are also aligned with our technical view of this pair:
The most recent economic release with the greatest impact for NZD was the NZ Quartely CPI, which took place on January 24, 2018 at 9:45pm GMT. The Deviation for the NZ Quartely CPI is 0.3% and the Forecast at the time was 0.4%. The actual figure came in at 0.1%, which was a negative surprise for NZD
The franc also trades as a more stable alternative to the dollar, euro or British pound in times of turbulence and uncertainty. While there are really not enough francs in circulation to use it as an alternative to these currencies, traders and speculators nevertheless seem to prefer the franc when conditions get dicey in other economies. With all the uncertainty with the euro and pound recently with the pound and euro I am expecting volume to increase in the swiss franc which might push the currency higher.
Trade active:
Half the position was just closed. Not loving the price action the trend line so I want to lock in some profits in case it turns arounds.