Technical Analysis NZDCHF : 2021-08-10

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
On the daily timeframe, NZDCHF: D1 approached the resistance line of the long-term descending channel. It must be broken upward before opening a position. A number of technical analysis indicators have generated signals for further growth. We do not rule out a bullish movement if NZDCHF: D1 rises above the 200-day moving average line and the last high: 0.645. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal, the last lower fractal and the lower Bollinger line: 0.628. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (0.628) without activating the order (0.645), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis​

In this review, we propose to consider the currency pair New Zealand dollar against the Swiss franc. Is it possible for the growth of NZDCHF quotes ? Such dynamics is observed with the weakening of the Swiss franc and the strengthening of the New Zealand dollar.

The recovery of the Swiss economy after the coronavirus epidemic is slower than expected. Unemployment in Switzerland in July was 3% and exceeded the forecast of 2.8%. Retail sales in June increased by 0.1% in annual terms against the forecast of + 2.7%. In turn, New Zealand released excellent data on the labor market for the 2nd quarter of this year. Unemployment fell to 4% from 4.7% in the 1st quarter. This is at least since the 2nd quarter of 2020. Recall that New Zealand's GDP in the 1st quarter of this year grew by 2.4% in annual terms and exceeded the forecast (-3.3%). Swiss GDP in the 1st quarter fell by 0.5%. Some investors are hoping that the Reserve Bank of New Zealand (RBNZ) will become the 2nd developed country central bank (after Bank of Canada) to announce a tightening of its monetary policy. The next RBNZ meeting will take place on August 18.