New Zealand dollar breaks resistance against Swiss francThe New Zealand dollar has broken above significant resistance in the form of multiple shooting stars in the NZD/CHF pair. This is a clear “risk on” type of trade, and this was given a bit more of a boost as the United States had reported better than anticipated jobs figures, and this of course suggests that the traders out there willing to take on a little bit more risk as they by currency such as the New Zealand dollar. Looking at this pair, the Swiss franc is considered to be “a safety currency”, so that of course will lose value when people are willing to take risk.
Underneath, there should be plenty of support at the top of the shooting stars, as denoted on the chart. Ultimately, this is a “backdoor” way of playing the US/China trade situation. At this point, the market is clearly above the 200 day EMA as well and is taking out the 0.65 level as I write this. Ultimately, this is a market that should continue go much higher, and pullback should continue to offer plenty of value. With this, pay attention to the US/China trade situation, stock markets around the world, and perhaps even gold as they all give you a “heads up” as to how the markets will behave, and whether or not people are willing to step in and take advantage of what looks to be a huge move forward. The New Zealand dollar has been rather strong for some time, and therefore it’s likely that the New Zealand dollar will continue to weigh it has been going. In fact, one thing that should pay attention to is that the candle for the day is impulsive, and the uptrend before has been very choppy and more of a grind. It now looks as if we are going into another leg higher.
