So far so good on my NZD/CHF long position! Before y’all read this trade update, make sure you check out my original trade idea first.
As you can see from the chart below, price bounced a little lower than my entry area of .7580 but eventually climbed back above the .7600 major psychological support. The bullish divergence did play out and I’m currently looking at a 90-pip gain on this position.
However, it appears that price is having a bit of trouble breaking past the .7700 resistance level, as NZD/CHF tested this area a couple of times then failed to sustain the rally. Could this be a sign that Kiwi bulls are getting weaker?
Stochastic is moving higher though, which suggests that there could still be some buying momentum left. I’m inclined to hold on until this pair reaches my profit target at .7700 but I don’t want to let go of all the profits I have so far, for fear that this might turn out like my AUD/USD short!
The forex economic calendar doesn’t have any major events lined up from both Switzerland and New Zealand for the rest of the week so I’m thinking a bit of consolidation might take place. From a bigger picture perspective though, fundamentals still favor the Kiwi thanks to the RBNZ rate hike while the SNB is intent on keeping the franc weak – all in all still bullish for NZD/CHF!
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